MCX Gold Intraday Strategy: Growing inflation brings back focus on yellow metal; buy June futures for this target

MCX Gold Intraday Strategy: March inflation has brought back focus on Gold and silver. The retail inflation (CPI inflation) rose to 6.95 per cent year-on-year remaining above the Reserve Bank of India (RBI) tolerance level. Global prices were also up 1 per cent on Tuesday on higher US consumer inflation news that resulted in a dollar slid.

Analyst Anuj Guta remains bullish on yellow metal and recommends a buy on bullion with a near term view. A higher inflation scenario would be favourable for Gold seen as a haven for investment in troubled times.

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June MCX Gold Futures were trading with strength on Wednesday around 11:30 am and were higher by Rs 93 or almost 0.2 per cent from the last closing price on Tuesday. Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities sees support for June Gold futures between Rs 52700 and 52200 while the resistance between Rs 53600 and 54000. Buying is recommended at Rs 52800 with a stop loss 52200 target 53600 -53800

As for international prices, Gupta sees support at USD 1955-1920 while the resistance is seen between USD 1990 and USD 2020. The IIFL Securities analyst sees support for Silver futures at Rs 68200-67400 and resistance at Rs 69900-71000

Meanwhile, May MCX Silver Futures were trading at Rs 69,133 around this time, up by Rs 343 or 0.5 per cent from the Tuesday closing price. Buy silver around Rs 68200, Gupta said with a stop loss at Rs 66800 while targets at Rs 69900 and 70500.       

Brokerage firm Motilal Oswal expects Gold futures to trade positively over the first session. It sees resistance at Rs 53100-53450 and support at Rs 52600-52300. International spot prices have a support between USD 1958 and USD 1945 while resistance between USD 1982 and USD 1995.

As for MCX Silver futures, support is seen between Rs 68400 and Rs 68000 while resistance is seen between Rs 69200 and Rs 69700. The international spot price of Silver has support at USD 24.28-24.10 and resistance at USD 24.70-24.90.

No buying recommendation was given in Gold or Silver in the report published by the brokerage.     

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)