Gold prices traded higher on Tuesday as the dollar index (DXY) slipped, supporting the yellow metal. The weakening greenback has been falling in anticipation of inflation data set for release later in the week, leading to a steady trade for gold. The DXY has decreased by 0.30% over the past five trading sessions, hovering near 103.77 against a basket of major currencies.
In response to international prices, MCX April gold futures were up at Rs 62,232 per 10 grams, while March Silver contracts were trading higher at Rs 69,340 per kg. On the Comex, gold futures were at $2,043 per troy ounce, with silver futures at $22.555 per troy ounce.
Looking ahead, gold may trade range-bound with a bearish bias ahead of key US data releases like GDP growth rate, ISM manufacturing, and PCE deflator inflation data. Praveen Singh, Assistant Vice President of Fundamental Currencies and Commodities Analysis at Sharekhan, suggested support levels at $2,025-$2,003 and resistance at $2,032/$2,050-$2,065 for gold.
Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies, mentioned that expectations for a rate cut by the Federal Reserve have shifted to no earlier than June, impacting gold prices. Lower interest rates typically benefit gold, which does not generate interest.
The price of gold in major physical bullion markets like Delhi and Ahmedabad is Rs 63,000 per 10 grams, with 1 kg of silver at Rs 72,000. Neha Qureshi also provided an intraday trading strategy, suggesting buying MCX April Gold futures at Rs 62,100 with a stop loss of Rs 61,800 and a price target of Rs 62,500. Similarly, buying MCX March Silver futures at Rs 69,400 with a stop loss of Rs 68,400 and a price target of Rs 71,400 could be considered.
As the market continues to fluctuate, staying updated on the latest market news, stock tips, and expert advice is crucial. Subscribing to platforms like ETMarkets for alerts and insights can help investors make informed decisions. Additionally, utilizing trading strategies provided by experts can assist in navigating the dynamic market conditions.
