Bullion prices fell sharply in the opening trade on Thursday on a stronger Dollar Index and the Federal Reserve’s assertions that the Central Bank could go for two more rate hikes by the end of this year. The Fed commentary strengthened the greenback and led to slippages in the price of gold and silver. MCX Gold is now trading at two-month lows.
The Fed kept interest rates unchanged after raising for 10 times in a row.
were trading at Rs 58,902 per 10 grams on Thursday, down Rs 400 or 0.67% while July Silver declined Rs 1,207 per kg or 1.66% to Rs 71,444. Both gold and silver futures had ended the Wednesday session with declines.
On the Comex, gold futures were trading at $1,947.10 per troy ounce, down $21.80 or 1.11% while silver futures shed $0.59 or 2.47% to $23.51.
The DXY was hovering around 103.25 against a basket of six top currencies and was down 0.08%.
“With a positive outlook for gold prices amid global economic challenges, these investment vehicles are likely to remain an attractive option for investors looking to protect and grow their wealth in the times ahead,” Jateen Trivedi, Vice President Research Analyst at LKP Securities said, commenting on the outlook of yellow metal, going ahead.Gold futures on the MCX have declined by 1.57% or Rs 947 per 10 grams in June, Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities told ET Markets.
“They are up by 7.87% or Rs 4,259 on a year-to-date basis. Meanwhile, silver futures have gained nearly Rs 540 or 0.75% in value terms in June while they are up 4.74% or Rs 3,290 on a YTD basis,” Gupta added.
Price of physical gold in Delhi and Ahmedabad is around Rs 61,300 per 10 grams while that of silver is Rs 75,000 per kg, the IIFL analyst said. Click to know more
Intraday Trading Strategy by Anuj Gupta
– Sell MCX August Gold futures at Rs 59,500 with a stop loss of Rs 59,850 and price target of Rs 58,900
– Sell MCX July Silver futures at Rs 72,800 with a stop loss of Rs 73,450 and price target of Rs 71,500.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)