Gold Rate Today: Amid range-bound yellow metal, what should traders do?
Federal Reserve could move. While a few Fed officials have pushed back against surging market expectations of rate cuts, markets are still pricing in about a 69% chance of a Fed rate cut in March, according to the CME FedWatch tool, Reuters reported.
Lower interest rates support non-yielding bullion.
Taking cues from the price of yellow metal in the international market, MCX February gold futures were trading at Rs 62,115 per 10 grams in the opening trade, down Rs 176 or 0.28% from Monday's closing price. Meanwhile, the March Silver futures were trading at Rs 74,450 per kg, rising Rs 40 or 05%.
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On Comex, Gold futures were trading at $2,037.90 per troy ounce, down $2.60 or 0.13% while Silver futures were trading at $24.130, rising $0.023 or 0.10%.
The dollar index (DXY) was down $0.01 or 0.01% against a basket of six top currencies and hovering around 102.56. The DXY has fallen nearly 1.26% in the past five sessions.
On Monday, MCX February contract closed at Rs 62,180, down by Rs 111 or 0.18% while the March Silver futures settled at Rs 74,405, down by Rs 5 or 0.01%.
«We have noticed subdued markets before Christmas and new year festivals in international markets.
However, the rupee is trading at 3 month high levels against the dollar that has curbed the appreciation in local bullion prices,» Anuj Gupta, Head Commodity & Currency, HDFC Securities said.
He sees Comex gold trade between $1,920 and $1,935 today with a positive bias while at Rs 61,800 — Rs 62,500 on the MCX. As for MCX Silver, a trading range between Rs 73,500 and Rs 75,000 is expected.
On the daily chart, the MCX Gold December contract is forming a higher high and higher low pattern indicating bullishness with the price currently
