MCX Gold rate: Dollar strength takes sheen away from Gold; expert advises strategy for intraday trade

MCX Gold rate: The strength in US Dollar weighed on the prospects of the yellow metal on Tuesday as Gold slipped with the Dollar Index hitting a 101 mark on the yen. This comes a day after Gold climbed to an over one-month high of USD 1,998.10, Reuters reported.

The impact was seen in MCX Gold and Silver futures as well, which were trading in the red around 7 pm today.

See Zee Business Live TV Streaming Below:

MCX June Silver Futures were trading at Rs 53040 per 10 gm and were down by Rs 232 or 0.44 per cent from the Monday closing price. Analyst Anuj Gupta recommends a buy in June Gold futures at Rs 52800 with a stop loss of Rs 52200 and target of Rs 53500 and 53700. He sees support at Rs 52700-52200 while resistance at Rs 53500-53900.

Meanwhile, May MCX Silver Futures were trading at Rs 69337 per kg around this time and were down by Rs 639 or nearly 1 per cent from the previous closing price.

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities recommends a buy on Silver Futures at Rs 69000-69200 with a stop loss of Rs 68200 and price target of Rs 70200-70700.

The support is seen at Rs 69200-68200 in the intraday while the resistance between Rs 70200 and Rs 71000, Gupta said.

“Gold retreated in the European session, and is currently trading under USD 1980. Surging DXY and rising US yields have added to downside pressure on bullions today. Weaker crude oil is also instrumental in keeping the yellow metal weaker,” Praveen Singh, AVP, Fundamental currencies and Commodities analyst at Sharekhan by BNP Paribas said.

“As such overall picture for gold remains supportive on escalating Russia-Ukraine conflict and inflation hedge buying amid slowdown in the global economy. Gold may make another attempt to breach $2000 on geopolitical headlines. The metal has a strong demand zone in $1950-$1960 zone,” he added.

(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.)