In the month of October, precious metals have shown an impressive upward rally, with gold prices gaining Rs 4,000/10 grams and silver prices increasing by Rs 6,100/kg.
Gold prices climbed to a record high on Thursday and were headed for their best month in seven on safe-haven demand ahead of the U.S. presidential election, while investors awaited U.S. inflation report for clues on the interest rate path.
In the US market, spot gold was steady at $2,786.89 per ounce, as of 0254 GMT, after hitting a record high of $2,790.15 earlier in the session. Prices have firmed 6% for the month so far. Meanwhile, the U.S. gold futures dipped 0.1% to $2,797.80.
The Nov. 5 U.S. election has entered its crucial final phase, with opinion polls indicating a close fight to call a winner between Republican former U.S. President Donald Trump and Democratic Vice President Kamala Harris. U.S. weekly jobless claims, due later in the day, and payrolls report on Friday are also on radar.
Today, the US Dollar Index, DXY, was hovering near the 104.12 mark, gaining 0.13 or 0.12%.“Gold reached a record high of $2,789.72 per troy ounce on Wednesday, pulling back slightly after Wall Street’s open but finding support around $2,770. The US Dollar gained strength on an ADP report showing a better-than-expected 233K job additions in October and a Q3 GDP growth rate of 2.8%,” said Neha Qureshi Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.“daily XAU/USD chart remains bullish despite overbought conditions, as the pair trades above all major moving averages. The 20 SMA is around $2,691.70, while the 100 and 200 SMAs are lower, signaling strong buying interest. Indicators show limited upward strength but suggest potential for higher highs.
On the 4-hour chart, the pair retains upward momentum, with technical indicators advancing in overbought territory and the 20 SMA rising below current levels. A break above $2,800 is possible ahead of the US election,” Qureshi added.
Intraday Trading Strategy by Neha Qureshi
- Buy MCX December gold futures at Rs 79,500 with a stop loss of Rs 79,300 and a price target of Rs 79,800.
- Buy MCX December silver futures at Rs 97,500 with a stop loss of Rs 96,500 and a price target of Rs 99,500.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
