Bullion prices extended their losses on Tuesday on a stronger Dollar Index (DXY). Analysts expect gold to be range bound in today’s session with a bearish tilt.
MCX August Gold futures were trading at Rs 59,176 per 10 grams in the opening trade and were unchanged as against their last close while July Silver futures declined Rs 113 per kg or 0.18% to Rs 72,313. Both gold and silver futures had settled in the red on Monday. Track prices here
On the Comex, gold futures were trading at $1,961.40 per troy ounce, down by $10.10 or 0.51% while silver futures were trading at $23.97, down by $0.15 or 0.63%.
“Gold is expected to be range-bound with a slight bearish tilt ahead of Federal Reserve‘s Chair Powell’s semiannual monetary policy report to the House Financial Services Committee on June 21. Market participants will be interested in knowing his take on the monetary policy path going forward, though presently, investors are sceptical of the Fed’s intentions to hike rates twice further this year,” Praveen Singh – Associate Vice President, Fundamental Currencies and Commodities at Sharekhan said.
Gold futures on the MCX have declined by 1.84% or Rs 1,107 per 10 grams in June, commodity expert at IIFL Securities Anuj Gupta told ET Markets. “They are up by 7.58% or Rs 4,168 on the year-to-date basis. Meanwhile, silver futures have gained nearly Rs 330 or 0.40% in value terms in June and 4.44% or Rs 3,080 on a YTD basis,” Gupta added.
Price of physical gold in Delhi and Ahmedabad is around Rs 61,000 per 10 grams while that of silver is Rs 73,000 per kg, the IIFL analyst said. Read more
Intraday Trading Strategy by Anuj Gupta
– Buy MCX August Gold futures at Rs 59,100 with a stop loss of Rs 58,750 and price target of Rs 59,750
– Buy MCX July Silver futures at Rs 72,200 with a stop loss of Rs 71,600 and price target of Rs 73,200.
SGB
Investors can also buy Sovereign Gold Bonds which opened for subscription on Monday. The first tranche of the FY 2023-24 is available at an issue price of Rs 5,926 per gram while there is a discount of Rs 50 for those investors who subscribe it online. The issue closes on Friday.
“RBI has issued an SGB tranche after six months this time now and is definitely a good investment option, as it offers an additional 2.5% interest per annum, other than gold price appreciation. Gold is an excellent portfolio diversifier and a hedge against uncertain times. In India, Gold has given around 12% CAGR return in the last 25 years, if this historical return continues going forward, the money invested in this SGB can double in the next 8 years, if one holds it till expiration,” Prithviraj Kothari, Managing Director, Riddhi Sidhhi Bullion (RSBL) said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)