Gold Rate Today: Gold drops Rs 900, silver declines by Rs 5000 in December. What should you do?

Gold traded rangebound on Monday ahead of the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting outcome on Wednesday.

Taking cues from the price of yellow metal in the international market, MCX February gold futures were trading at Rs 61,727 at the opening time, up by Rs 8 or 0.01% from Friday's closing price. Meanwhile, the March Silver futures were trading at Rs 72,488 per kg, lower by Rs 30 or 0.04%. Click to know more

On Comex, gold futures were trading at $2,016.10 per troy ounce, up by $1.60 or 0.08% while silver futures were trading at $23.295, higher by $0.019 or 0.08%.

The dollar index (DXY) was up $0.05 or 0.05% against a basket of six top currencies and hovering around 103.59. The DXY has fallen by 2.14% in the last one month.

The February Gold contract ended Friday with declines at Rs 61,770, up by Rs 51 or 0.08%. As for silver futures, the March contract settled at Rs 72,539, higher by Rs 21 or 0.03%.

Gold futures on the MCX have lost 1.47% or Rs 921 per 10 grams on a month-to-date basis, Anuj Gupta, Head Commodity & Currency, HDFC Securities informed. They aee up by 12.18% or Rs 6,702 on a year-to-date basis as on Friday, December 8, on the closing price basis. Meanwhile, silver futures have declined nearly Rs 4,996 or 6.45% in value terms in December while gaining 4.47% or Rs 3,105 on a YTD basis, the commodity and currency analyst said.

Gupta said that the view on gold is moderately bearish and Comex gold may trade between $1,990 to $2,010 levels while MCX Gold between Rs 61,500 and Rs 62,500 levels. As for silver, the March contract may trade between Rs 71,500 and Rs 73,500 levels, he adds.

Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 62,400 per 10 gram while those of 1 kg of Silver is Rs 74,000. Know more here

Intraday Trading Strategy by Anuj Gupta

• Sell MCX February Gold futures at Rs 61,750 with a stop loss of Rs 61,920 and price target of Rs 61,300.
• Sell MCX March Silver futures at Rs 72,500 with a stop loss of Rs 73,080 and price target of Rs 71,100.

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