Bullion recovered some losses in Wednesday’s early trade on softness in the dollar index (DXY) as Moody’s cut credit ratings of several small and mid-sized US banks. Street awaits US consumer price data that could have a bearing on the US Fed’s decision on whether to go with more hikes in the next monetary policies.
The DXY was trading flat at 102.50 though the bias was negative.
From the India standpoint, investors will be keenly looking at the monetary policy announcements on Thursday, August 10. The three-day Monetary Policy Committee (MPC) is underway and ends tomorrow.
The October gold futures were trading with gains at Rs 59,309 per 10 grams on the MCX, up Rs 61 or 0.10%. Meanwhile, September Silver futures were trading at Rs 70,400 per kg, higher by Rs 184 or 0.26%. MCX gold futures ended down 0.28% on Tuesday, while silver futures fell by 1.50% or Rs 1,068. Track prices here (https://economictimes.indiatimes.com/commoditysummary/symbol-GOLD.cms)
On the Comex, gold futures were trading at $1,962.60 per troy ounce on Wednesday, up $2.30 or 0.12% while silver futures were at $22.935, higher by $0.128 or 0.560%.
On the technical placement of the yellow metal, Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said that gold on the 4-hour timeframe showed a descending triangle pattern and if it breaks below Rs 59,266, it could further drop to Rs 58,850. Click to know more (https://economictimes.indiatimes.com/markets/gold-rate-in-delhi-today)
“The MACD indicator’s negative crossover suggests ongoing downward movement. Gold trading below its 200-day EMA indicates a bearish trend. Support for gold is at 58,948 and 58,737, with resistance at 59,600 and 60,000,” she said.Intraday Trading Strategy by Neha Qureshi
– Sell MCX October Gold futures at Rs 59,350 with a stop loss of Rs 59,600 and a price target of Rs 58,950
– Sell MCX September Silver futures at Rs 70400 with a stop loss of Rs 71200 and a price target of Rs 68,900
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)