Bullion traded with a positive bias in Friday’s early trade aided by the weakness in the US Dollar Index (DXY) which is on a slippery turf. The DXY has slipped below the 100 mark against a basket of 6 major currencies. A lower headline inflation numbers in the US weakened the greenback and lifted the yellow metal.
The August gold futures were trading at Rs 59,285 per 10 grams on the MCX around 10 am, up by Rs 46 or 0.08% from Thursday’s closing price. Meanwhile, September Silver futures were at Rs 75,585, rising Rs 259 or 0.34%. Gold and silver futures ended in the green in the previous session. Track prices here (Hyperlink: https://economictimes.indiatimes.com/commoditysummary/symbol-GOLD.cms)
On the Comex, gold futures were trading at $1,965.80 per troy ounce on Friday, up by $2 or 0.10% while silver futures trading at $25.070, higher by $0.121 or 0.480%.
Gold and silver prices are trading around one-month high levels as the Dollar Index fell to 15-month low after US CPI grew less than anticipated, Prithviraj Kothari, MD & CEO of RiddiSiddhi Bullions Limited said. The annual CPI released was measured at 3%, the lowest level since March 2021 and the 12th consecutive month of declines as inflation is cooling, he added.
“Spot gold closed with a gain of 0.16% at $1,960.19 on Thursday as investors continue to trade on falling inflation and the Federal Reserve rate hike pause themes. Bond yields continued to decline in exaggerated moves as investors ignored the drop in the US weekly jobless claims and focused on the US PPI data missing the forecast,” Praveen Singh – Associate Vice President, Fundamental Currencies and Commodities at Sharekhan said.
Gold is expected to find good support on the dips, he said, adding that the bias remains with the present range being $1,930 to $1,980. Interim support is at $1,950, he said.
Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities, expects DXY to further go down and test 97 levels, which he believes would augur well for the yellow metal.Gold futures on the MCX have gained by 1.83% or Rs 1,063 per 10 grams on a month-to-date basis, Gupta said. They are up by 7.76% or Rs 4,266 on a year-to-date basis, he added. Meanwhile, silver futures have gained nearly Rs 5,400 or 7.71% in value terms in July while they are up 8.82% or Rs 6,050 on a YTD basis, the IIFL analyst said.
Price of physical gold in bullion markets in Delhi-NCR is around Rs 61,000 per 10 grams while that of Silver is Rs 75,500 per kg, Gupta said. Click to know more (Hyperlink: https://economictimes.indiatimes.com/markets/gold-rate-in-delhi-today)
Intraday Trading Strategy by Anuj Gupta
– Buy MCX August Gold futures at Rs 59,000 with a stop loss of Rs 58,650 and price target of Rs 59,600
– Buy MCX September Silver futures at Rs 74,500 with a stop loss of Rs 73,700 and price target of Rs 76,500.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)