Gold August futures contracts at MCX opened flat on Monday at Rs 68,160 per 10 gram, which is down by merely 0.04% or Rs 26 while silver September futures contracts were trading at Rs 81,700/kg, up by 0.4% or Rs 329.
The prices of gold have fallen by Rs 3,400/10gm in July so far while those of silver have gone down by Rs 7,800/kg.
Gold prices recovered from their lows, as the market reacted to recent U.S. inflation data and anticipated a possible interest rate cut from the Federal Reserve in September.
This rise in gold comes after a report showed low inflation in June, which supports the expectation of a rate cut. Lower interest rates tend to be positive for gold because it doesn’t earn interest, making it more attractive compared to other investments.
Gold and silver prices fell in the early sessions of the week amid custom duty cuts by the Indian Government in the Union Budget and Chinese demand worries. The U.S. second quarter GDP and jobless claims data was also better than expected and also pushed gold and silver prices lower but U.S. Fed rate cut hopes and short coverings supported prices at lower levelsToday, the US Dollar Index, DXY, was hovering near the 104.23 mark, falling 0.09 or 0.09%.“The daily chart of Gold August Futures on MCX highlights a significant bearish trend, with the current price at Rs 68,186, up by 1.07%. The price recently found support around Rs 67,300 and is showing signs of a potential rebound. However, it faces resistance near the 50-day EMA at Rs 71,512. The moving averages indicate a short-term bearish trend, as the 50-day EMA remains above the current price. The Relative Strength Index (RSI) is at 32.24, approaching the oversold zone, suggesting the possibility of a rebound. The MACD is in negative territory, with the MACD line below the signal line, confirming bearish momentum. Despite the overall bearish outlook, the proximity to the oversold zone as indicated by the RSI may prompt a short-term recovery,” said Neha Qureshi Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.Intraday Trading Strategy by Neha Qureshi:
- Buy MCX August Gold futures at Rs 68,200 with a stop loss of Rs 67,500 and a price target of Rs 69,500.
- Buy MCX September Silver futures at Rs 81,500 with a stop loss of Rs 80,500 and a price target of Rs 83,500.
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