Ahead of the US inflation data, gold June futures on the MCX traded on a flat note, up 0.09% or Rs 68 at Rs 72,365/10 grams on Wednesday while MCX Silver July contracts rose 0.18% or Rs 152 to Rs 85,569/kg.
The US inflation data (the core consumer price index) is expected to indicate a moderation in inflation for the first time in six months. If confirmed, this could suggest the possibility of interest rate cuts by the Federal Reserve later in the year, which is generally favourable for gold.
Globally, gold price has remained relatively stable, trading close to $2,356 per ounce, after recently rising almost 1%.
Spot gold held its ground at $2,359.02 per ounce, as of 0314 GMT, trading in a narrow $5 range, after gaining 1% on Tuesday while U.S. gold futures rose 0.2% to $2,364.60.
Today, the US Dollar Index, DXY, was hovering below the 105 mark at 104.93, falling 0.08%.Despite facing several economic fluctuations, gold has maintained a strong performance this year, increasing by about 14%. This rise has been supported by several factors, including purchases by central banks, increased geopolitical tensions, and strong consumer demand from China. Additionally, the price of platinum has also increased significantly this week, following revised projections that anticipate a greater shortage of the metal.“On the daily trading chart, gold has displayed a bullish engulfing candlestick pattern, suggesting a positive outlook for its price. This upward trend is reinforced as gold has bounced back from its 21-day exponential moving average (EMA), which currently acts as its support level. Additionally, a positive divergence in the Relative Strength Index (RSI) suggests increasing market momentum. Keep an eye on potential resistance levels at 72,900 and 73,300. On the lower side, the support levels are set at 71,800 and 71,200,” said Neha Quereshi of Anand Rathi Commodities.Intraday strategy by Neha Quereshi:
– Buy MCX JUNE Gold futures at Rs 72300 with a stop loss of Rs 71800 and a price target of Rs 72900
– Buy MCX JULY Silver futures at Rs 85500 with a stop loss of Rs 84500 and a price target of Rs 87500
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