Gold prices slipped in early trade on Monday on a firmer dollar index (DXY) and a cautious approach from the traders ahead of the Federal Open Market Committee (FOMC) meeting which begins on Tuesday.
MCX Gold futures were trading at Rs 59,660 per 10 grams in the opening trade, down by Rs 161 or 0.27% from Friday’s closing price. July Silver traded at Rs 466 per kg or 0.63% lower at Rs 73,330.
On the Comex, Gold futures were trading at $1,970.80 per troy ounce, down by $6.40 or 0.32% from the Friday closing price while Silver futures were trading at $24.20, lower by $0.21 or 0.86%.
However, gold’s safe haven appeal is expected to sustain in the near term as weak economic data released last week put major economies including the US, China and Eurozone on a slippery wicket.
“The economic data released last week indicated that the eurozone economy may have slipped into recession in the first quarter of this year, after slowing in the first quarter of 2023 and the last quarter of 2022. Moreover, due to the decrease in business activities in America and Europe, the attention of investors is increasingly shifting toward the precious metals,” Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart said.
China’s biggest banks cut interest rates for savers last week in a bid to boost growth in the economy, which may improve slowing consumption, Yadav added.
“Gold and silver prices have recovered from lower levels and the short-term rally in the US dollar index seems to be completed. The trends in precious metals is likely to remain bullish this week. On MCX June futures, gold has support near Rs 58,300 and resistance near Rs 61,000. Meanwhile, silver futures have support near Rs 71,000 and resistance near Rs 76,000, Yadav added.”Positive outcome from the debt ceiling is giving support to gold. Moreover, a pause in interest rate by FOMC may give support to gold and silver this week,” Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities said.
“We are expecting gold to test Rs 60,500 per 10 grams on MCX while silver to test Rs 75,000. If the Rs 75,000 level is breached, the next higher level for silver futures will be Rs 76,500,” Gupta told ET Markets.
As for Comex, it could test $1,980 – $1,990 very soon and if it is able to sustain above $1,990 then the yellow metal may test $2000 levels again, Gupta said.
Gold futures on MCX have declined by 0.62% or Rs 377 per 10 grams in June, Gupta said. They were up by 8.73% or Rs 4,804 on a year-to-date basis as on Friday, June 9, he said. Meanwhile, silver futures have gained nearly Rs 1,694 or 2.35% in value terms in June while gaining 6.31% or Rs 4,383 on a YTD basis, Gupta added.
The price of physical gold in Delhi and Ahmedabad is around Rs 61,300 per 10 grams while that of silver is Rs 75,000 per kg, the IIFL analyst said. Click to know more
Intraday Trading Strategy by Anuj Gupta
– Buy MCX August Gold futures at Rs 59,600 with a stop loss of Rs 59,250 and price target of Rs 60,200
– Buy MCX July Silver futures at Rs 73,200 with a stop loss of Rs 72,600 and price target of Rs 74,400.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)