Gold June futures contracts on Thursday fell Rs 352 or 0.05% to open at Rs 70,700, while Silver May contracts opened at Rs 80,046, 0.56% or Rs 451 lower.
Gold prices remained stable after a recent decline, with the focus now on upcoming U.S. inflation data which is expected to influence future monetary policy decisions and the value of the dollar. This steadiness follows a 3% drop earlier in the week due to decreased geopolitical tensions reducing demand for gold as a safe asset.
Despite the overall drop in demand, gold has still performed well this year, largely due to purchases by central banks and increased interest from markets in Asia.
Gold prices steadied on Wednesday as risk premiums over tensions in the Middle East eased, while investors strapped in for U.S. economic data due later in the week that could offer clues to the Federal Reserve‘s interest rate path.
Spot gold was flat at $2,322.09 per ounce by 1:45 p.m. ET, after hitting its lowest since April 5 in the previous session. U.S. gold futures settled 0.2% lower at $2,338.4. Spot silver dipped 0.2% to $27.23.
Bullion prices have fallen over $100 after hitting a record high of $2,431.29 on April 12.Today, the US Dollar Index, DXY, was hovering near the 105.78 mark, falling 0.07 or 0.07%.“The price of gold was slightly above $2,300 per ounce in early Asian trading. Investors are particularly looking forward to the release of the personal consumption expenditures index, a key inflation indicator favored by the Federal Reserve, which might suggest ongoing high inflation and delay potential interest rate cuts,” says Neha Quereshi, senior technical & derivative analyst, Anand Rathi Commodities & Currencies.
Intraday Trading Strategy by Neha Quereshi:
– Sell MCX JUNE Gold futures at Rs 71000 with a stop loss of Rs 71500 and a price target of Rs 70500
– Sell MCX MAY Silver futures at Rs 80400 with a stop loss of Rs 81400 and a price target of Rs 78400
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