Gold Rate Today: 2 month lows for MCX gold, silver down by Rs 3,900 per kg. What should traders do?
The MCX October gold futures were trading down by Rs 182 or 0.31% from the Tuesday closing price at Rs 58,250 per 10 gram on the MCX while the December Silver futures were trading at Rs 71,110 per kg, lower by Rs 667 or 0.93%.
On Comex, Gold futures were trading at $1,914.40 per troy ounce on Wednesday, down by $5.40 or 0.28% while Silver futures were at $22.950, lower by $0.246 or 1.060%. The comex prices are at a month lows.
A rising dollar index (DXY), which is now at its 10 month peak, has engineered the fall in bullion prices.
It is currently above the 106 mark against six major currencies.
«Gold prices went down sharply on Thursday correcting by 1.59% to close at Rs 58,432. Dollar Index is trading at a 10 month high level at 105.90 levels and it is putting pressure on gold as demand is shifting from gold to dollar,» Anuj Gupta, Head Commodity & Currency at HDFC Securities, of HDFC Securities told ETMarkets.
He sees Comex gold testing $1,895-$1,890.
Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies sees MCX October Gold futures currently forming an M-pattern on the daily charts, which indicates a bearish activity. It's trading near its neckline, which is at the breakdown level of Rs 58,275 and if this neckline is breached, we may see bearish trends, further, she said.
«The price is currently trading below both its 50 and 100 days Exponential Moving Averages (EMA), which are acting as strong resistance levels. The MACD indicator has given a negative crossover, indicating a bearish trend. Additionally, the RSI has shown negative divergence, suggesting a potential move to the downside,» Qureshi said.
