Gold Rate Today: Yellow metal extends gains for 3rd session in a row. Should you buy or book profits?

Gold traded range bound on Wednesday in the international and domestic markets amid a steady dollar. The MCX December gold futures were trading at Rs 57,651 per 10 gram, up by Rs 22, or 0.04%. Meanwhile, the December silver futures were trading at Rs 69,035 per kg, higher by Rs 117 or 0.17%. MCX Gold extended gains for the third session in a row.

The dollar index (DXY) was hovering near 105.76, against six top global currencies, down by $0.07 or 0.07%.

On Comex, gold futures were trading at $1,874.20 per troy ounce on Wednesday, down by $1.10 or 0.06% while Silver futures were at $22.010, higher by $0.570 or 1.260%.

The December gold futures had ended with gains of Rs 47 or 0.08% at Rs 57,619 on Tuesday while the December Silver futures closed at Rs 68900, down by Rs 194 per kg or 0.28% on a holiday curtailed trading session.

The ongoing Israel-Hamas crisis has lent support to the yellow metal and increased its safe haven appeal among the investors, fund houses and global Central Banks, reflecting a shift from USD to gold, Anuj Gupta, Head Commodity & Currency at HDFC Securities told ETMarkets. Moreover, the DXY has also corrected from an overbought zone and is signaling support for the gold price, he added.

Gold futures are up 0.05% or by Rs 29 on the month-to-date basis while they have gained 4.75% or by Rs 2,612 on the year-to-date basis, Gupta said.

As for Silver futures, the declines are to the tune of 1.34% or Rs 939 in October while the declines this year stand at 0.71% or Rs 495, he said.

"Gold has strengthened following a drop in the US treasury yields which happened after Federal Reserve officials hinted that interest rates are high enough. When Treasury yields go down, it's typically good for gold," Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said.

On the daily chart, gold December futures have formed a hammer candlestick pattern followed by a bullish engulfing candlestick pattern and currently the price is trading below both its 100-day and 200-day Exponential Moving Averages (EMA), which is acting as strong barriers, Qureshi. Additionally, the MACD indicator has recently crossed into negative territory, indicating a bearish momentum, she said.

A further rebound could be expected as the RSI displays gold in an oversold zone, she opined. She sees resistance at Rs 57,744-58,275 while support at Rs 57,501-57,000.

Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 59,500 per 10 gram while those of 1 kg of Silver is Rs 72,500.

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Intraday Trading Strategy by Neha Qureshi
– Buy MCX December Gold futures at Rs 57,600 with a stop loss of Rs 57,200 and a price target of Rs 58,200.

– Buy MCX December Silver futures at Rs 69,000 with a stop loss of Rs 68,000 and a price target of Rs 71,000.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)