Yellow metal shines as Dollar takes hit; buy MCX Gold, Silver futures when markets resume trading at 5 pm today

Commodity market MCX is closed for trading in the first session on Wednesday on account of Diwali Balipratipada. They will resume trading from 5 pm. Investors and traders willing to make positions in Gold and can look to buy MCX December Gold and Silver futures, commodity and currency expert Anuj Gupta said. 

The December Gold futures ended at Rs 50648 per 10 gram on Tuesday and were up by Rs 68 or 0.59 per cent from the Monday closing price. Meanwhile, December Silver futures were trading at Rs 58091 at the closing time and were up by Rs 343 or 0.59 per cent.

 Source: MCX

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities suggested a Buy in Gold futures at Rs 50500 with a stop loss of Rs 50250 and a price target of Rs 51000. As for Silver futures, buying is recommended at Rs 57400 with a stop loss of Rs 56800 and price target of Rs 58500.

Gupta said that bullion has gained strength amid weakness in US Dollar Index (DXY) as the latter slipped below 111 against a basket of major currencies. This is lending support to gold and silver prices, the VP said.

MCX Gold has gained 1per cent this month while silver futures’ prices are up nearly 3 per cent during this month.

In the physical markets, the demand for Gold and Silver significantly picked up because of Dhanteras, Gupta opined seeing an uptick of 35-40 over the previous year. 

Gold Futures were trading at USD 1,661 on the CME around this time and were up by USD 10 3.10 or 0.19 per cent. Meanwhile, Silver was trading at  USD 19.450, up by USD 0.101 or 0.52 per cent.

Commodity Snapshot

 Source: Comex
 

(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.)