Gold Price Today: Yellow metal trades near lifetime peak. What should traders do?

The Dollar Index (DXY) is hovering above the 104 mark against a basket of six top currencies at 104.39, up by 0.16 points or 0.16%. It has gained 0.95% over the past five trading sessions.

Gold has corrected by Rs 803 from its lifetime high of Rs 66,943 which it hit on Thursday. In the international markets, the prices had shot up above the $2,220 per troy ounce mark.

MCX Gold and Silver futures ended with minor declines on Tuesday with the June gold contract settling with a downtick of Rs 6 per 10 grams or 0.01% at Rs 66,010 while the May silver contract ended down by Rs 29 or 0.04% at Rs 74,489 per kg.

"Gold prices have stayed near record highs for two days, as investors wait for important US economic data coming out this week. This data might affect the US 's plans regarding interest rates. A key report expected on Friday, although markets will be closed, might show high inflation rates for February. This, along with recent strong US economic indicators suggests that interest rates might not be cut as some hoped," Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said.

Higher interest rates can have a negative impact on non-yielding gold.

On the daily chart, MCX April gold contracts have formed an inverted hammer candlestick pattern indicating bearishness and with the RSI remaining in the overbought territory, a potential retracement in prices cannot be ruled out, Qureshi said. A surge beyond the 65,800 mark would solidify the bearish outlook, the Anand Rathi Analyst said as she puts key resistance levels at 66,440 -Rs 66,900 while support at Rs 65,550- Rs 65,050.

The prices have risen by 5.67% or Rs 3,547 on MCX on a month-to-date basis, Anuj Gupta, Head Commodity & Currency, HDFC Securities said. On the year-to-date basis, the uptick is Rs 2,911 or 4.61%. As for the Silver contract, the MTD gains stand at 4.54% or Rs 3,239 while the YTD gains at 0.12% or Rs 88, Gupta added.

Gupta sees MCX gold trading at Rs 65,500- Rs 66500 levels while silver at Rs 74,000-Rs 75,500.

Price of gold in major physical markets like Delhi, Ahmedabad and other cities is Rs 66,300 per 10 gram while those of 1 kg of Silver is Rs 76,000, Gupta said.

Intraday Trading Strategy by Neha Qureshi

– Sell MCX April gold futures at Rs 66,100 with a stop loss of Rs 66,500 and a price target of Rs 65,600.

– Sell MCX May silver futures at Rs 74,500 with a stop loss of Rs 75,500 and a price target of Rs 72,500.

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