Gold August futures have been trading flat over the past week, gaining merely Rs 154 and opening at Rs 72,554 per 10 grams on Wednesday. Silver September futures contracts have risen by nearly Rs 1,200 during the same period, with silver futures opening at Rs 93,199/kg today.
Gold prices settled on a slightly positive note in the domestic and international markets. Gold August futures contract settled at Rs 72,398 per 10 grams with a gain of 0.09% and silver September futures contract settled at Rs 92,969 per kilogram with a gain of 0.38%, showing high volatility during the Fed Chairman’s speech before the U.S. Senate on Tuesday.
Federal Reserve Chairman Jerome Powell reiterated that the central bank needs more signs of slowing inflation before lowering interest rates. Speaking to the US Senate Banking Committee, Powell noted “some modest further progress” in easing inflation, which has decreased significantly over the past couple of years. However, he emphasized the need for more positive data to ensure inflation is moving toward the 2% target.
Interest rates are currently at a two-decade high, with many eager for rate cuts, which would benefit gold and other dollar-priced commodities. Central bank purchases, particularly in Uzbekistan, Serbia, and the Czech Republic, are also influencing the gold market as countries look to diversify reserves and protect their economies.
Today, the US Dollar Index, DXY, was hovering near the 105.12 mark, falling 0.1 or 0.1%.“On the daily chart, MCX Gold August futures experienced a breakout from its symmetrical triangle pattern but failed to maintain the breakout, resulting in a pullback. Currently, the price is trading near the breakout level. Sustaining above 72,600 would indicate a bullish movement. The price is trading above its 21 EMA, reflecting bullish sentiments. Resistance levels are around 73,068 and 73,400, while support levels are at 72,072 and 71,600,” said Neha Qureshi Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.Intraday Trading Strategy by Neha Qureshi:
- Buy MCX August gold futures at Rs 72,400 with a stop loss of Rs 71,900 and a price target of Rs 73,000.
- Buy MCX September silver futures at Rs 93,000 with a stop loss of Rs 92,000 and a price target of Rs 95,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)