Gold remained range-bound in Wednesday’s early trade ahead of the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting later in the day. Dollar Index (DXY) was above the 101 mark against a basket of six top currencies.
The August gold futures were trading with minor gains at Rs 59,203 per 10 grams on the MCX, up Rs 14 or 0.02%. Meanwhile, September Silver futures were trading at Rs 74,717, down Rs 56 or 0.07%. Click to know more
Gold and silver futures ended in the green in the previous session. While gold rose 0.13%, silver futures fell 0.91%, at the close on Tuesday.
On the Comex, Gold futures were trading at $1,964.20 per troy ounce on Wednesday, up $0.50 or 0.03% while Silver futures trading at $24.750, up $0.074 or 0.30%.
“Overall, range-bound trading is expected to continue in the gold counter ahead of the FOMC monetary policy decision due on July 26,” Praveen Singh, Associate Vice President, Fundamental Currencies and Commodities at Sharekhan said. Support is seen at $1,950- $1,935, while resistance is pegged at $1,970- $1,987.
Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities expects DXY to further go down and test 97 levels adding that it would augur well for the yellow metal.
“Gold futures on the MCX have gained by 1.68% or Rs 980 per 10 grams on a month-to-date basis. They were up 7.61% or Rs 4,183 on the year-to-date (YTD) basis,” he said. “Meanwhile, Silver futures have gained nearly Rs 4,750 or 6.78% in value terms in July while gaining 7.78% or Rs 5,400 on the YTD basis,” he added.The price of physical gold in bullion markets in Delhi-NCR is around Rs 60,600 per 10 grams while that of Silver is Rs 76,700 per kg, Gupta said.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX August Gold futures at Rs 59,000 with a stop loss of Rs 58,650 and a price target of Rs 59,600
– Buy MCX September Silver futures at Rs 73,500 with a stop loss of Rs 72,700 and a price target of Rs 74,500.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)