Gold prices dip as dollar strengthens; what should investors do? | India Business News

Gold rate today: Gold prices experienced a decline in early trade on Wednesday, influenced by a rise in the dollar index. According to ET, international markets reflected this trend, with MCX February gold futures displaying lackluster performance. The situation has prompted discussions on whether it is the right time to sell bullion.
Current market scenario
In the trading session, gold futures hovered around Rs 62,000 per 10 grams on the MCX, displaying a slight negative bias.Meanwhile, March Silver futures traded at Rs 71,865 per kg, marking a decrease of Rs 228 or 0.32%. Comex Gold futures on Wednesday registered a value of $2,027.30 per troy ounce, reflecting a decrease of $2.90 or 0.14%. Silver futures on the same platform were down by $0.133 or 0.580% at $22.960.
Impact of dollar index
The dollar index (DXY) saw a marginal increase, trading at 103.43 against a basket of six major currencies, representing a 0.07% gain. Over the past five trading sessions, the index appreciated by 1.05%. This uptick in the dollar index was identified as a contributing factor to the decline in gold prices.

Expert analysis
Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies, was quoted as saying by ET that gold steadied after a 1.4% drop, influenced by comments from US Fed Governor Waller suggesting fewer rate cuts. The rise in the dollar and Treasury yields impacted gold, which faced a decline in investor interest.

Technical indicators
Qureshi highlighted that on the daily chart, MCX February Gold futures exhibited bearish signals, breaking down from its rising channel and forming lower highs and lower lows. Additionally, the MACD’s negative crossover and the 21-day EMA crossing below the 50-day EMA contributed to the bearish outlook.

Market outlook
Qureshi identified resistance levels at Rs 62,500 – Rs 63,000, with support at Rs 61,530 – Rs 61,000.
Despite Tuesday’s decline, Anuj Gupta, Head Commodity & Currency, HDFC Securities, mentioned that gold had narrowed its losses to 1.88% or Rs 1,188 per 10 grams in 2024. Silver futures also reduced losses to 3.14% or Rs 2,337 per kg from 4.13% or Rs 3,076 in the last four sessions.
Intraday trading strategies
Neha Qureshi suggested selling MCX February Gold futures at Rs 62,000 with a stop loss of Rs 62,500 and a price target of Rs 61,300.
Anuj Gupta proposed selling MCX February gold futures at Rs 62,020 with a stop loss of Rs 62,180 and a price target of Rs 61,850. Additionally, he recommended selling MCX March Silver futures at Rs 71,925 with a stop loss of Rs 72,300 and a price target of Rs 71,480.

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