Gold was trading with minor gains on Friday as a pullback in the dollar index (DXY) below the 104 mark lent some strength. The gains were on account of Philadelphia Federal Reserve President Patrick Harker’s comments, arguing for not undertaking another rate hike when the Fed meets later this month. He said the Central Bank should not increase rates despite a “disappointingly slow” pace of inflation control.
On Comex, gold futures were trading flat at $1,997.10 per troy ounce, though the bias was positive while the silver futures were trading at $24.035 per troy ounce — up by 0.20%.
The August gold futures were trading at Rs 60,251 per 10 gm at 3:30 pm and were up by Rs 17 or 0.03%. Meanwhile, July Silver futures were trading at Rs 72,790 per kg — higher by Rs 196 or 0.27%.
“Comex Spot gold prices traded up on Friday, with spot gold price at Comex was trading higher by 0.06% at $1,978.80 per ounce. While the Gold August future contract at MCX was trading up by 0.05% at Rs 60,250 per 10 gm by noon,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
Weakness in the US dollar, and expectations of a pause in the US Federal Reserve policy tightening campaign boosted precious metals’ appeal, Gandhi said.
MCX gold August futures are likely to find support at Rs 60,080 – Rs 59,700 per 10 gm and resistance at Rs 60,580 – Rs 60,750, the HDFC Securities analyst said. Comex spot gold is likely to find buyers in the range of $1,965 – $1,950 per ounce and while $1,995 – $2,009 per ounce is the resistance for the day.
“Gold prices after witnessing volatility in the past few sessions are on track for their biggest weekly gains in nearly two months, as hopes of a pause in the US central bank’s policy tightening campaign boosted bullion’s appeal,” said Navneet Damani, Senior Vice President – Commodity Research at Motilal Oswal Financial Services.Broader trends on the COMEX could be in the range of $1,960 – $1,992 and on domestic front prices could hover in the range of Rs 60,000 – Rs 60,700, Damani said.
Gold futures on the MCX have advanced by 0.02% or Rs 12 per 10 gm in June, said Anuj Gupta, Vice President (VP) of Commodity and Currency Research at IIFL Securities. They were up 9.63% or Rs 5,292 on a year-to-date basis as of Thursday, June 1, on the closing price basis, he said. Meanwhile, Silver futures have gained nearly Rs 705 or 0.97% in value terms in June while gaining by 4.97% or Rs 3,449 on the YTD basis, Gupta added.
Gupta said the price of physical gold in Delhi and Ahmedabad is around Rs 61,000 per 10 gm while that of silver is Rs 72,500 per kg.
Intraday trading strategy by Anuj Gupta
– Buy MCX June Gold futures at Rs 60,000 with a stop loss of Rs 59,750 and price target of Rs 60,500
– Buy MCX July Silver futures at Rs 72,400 with a stop loss of Rs 71,750 and price target of Rs 73,500.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)