Ahead of the Fed Chairman’s speech and upbeat US housing data, gold October futures contracts at MCX opened flat on Friday at Rs 71,384 per 10 gram, which is up by 0.27% or Rs 190 while silver September futures contracts were trading at Rs 83,979/kg, up by 0.29% or Rs 243.
Prices of gold have dipped by Rs 400/10 gm in the last 3 days while silver has fallen by Rs 750 per kilogram.
On Thursday, gold and silver settled on a weaker note in the domestic and international markets. Gold October futures contract settled at Rs 71,194 per 10 grams with a loss of 0.89% and silver September futures contract settled at Rs 83,736 per kilogram with a loss of 1.33%
Gold prices fell below $2500 on Thursday after the Federal Reserve’s latest meeting minutes hinted at a likely rate cut in September. The US dollar slightly recovered, and 10-year Treasury yields rose ahead of Fed Chair Jerome Powell’s speech at Jackson Hole.
The Fed’s July meeting minutes revealed that while the interest rate remained at 5.25% to 5.50%, most officials believed a rate cut might be needed at the next meeting if economic data supported it.Additionally, the Labor Department reported a significant downward revision of 8,18,000 jobs created over the past year, the largest adjustment since 2009. This data has fueled expectations of a September rate cut, though the likelihood of a 0.5% cut has decreased slightly.Today, the US Dollar Index, DXY, was hovering near the 101.33 mark, falling 0.18 or 0.18%.“The daily chart, MCX Gold October futures are trading above a rising trend line, forming a higher high and higher low pattern, which signals bullish sentiment. The price is currently trading above its 21 & 50-day EMA, and the RSI shows positive divergence, indicating a bullish outlook. Resistance levels are identified around 71,500 and 71,900, while support is seen around 70,800 and 70,300,” said Neha Qureshi Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.
Intraday Trading Strategy by Neha Qureshi:
- Buy MCX October gold futures at Rs 71,200 with a stop loss of Rs 70,800 and a price target of Rs 71,900.
- Buy MCX September silver futures at Rs 83,700 with a stop loss of Rs 82,700 and a price target of Rs 85,700.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)