Gold prices gained in the early trade on Wednesday on the back of a weaker dollar index (DXY). Although traders maintained their cautious approach ahead of the Federal Open Market Committee (FOMC) outcome, scheduled later in the day.
MCX August Gold futures were trading at Rs 59,301 per 10 grams in the opening trade, up 0.19% while July Silver futures were trading higher by Rs 211 per kg or 0.29% at Rs 72,305. Both gold and silver futures ended the Tuesday session with declines.
On the Comex, gold futures were trading at $1,960.10 per troy ounce, up by $1.50 or 0.08% while Silver futures were trading at $23.86, up by $0.04 or 0.16%.
The DXY was hovering around 103.25 against a basket of six top currencies and was down 0.08%.
“With a positive outlook for gold prices amid global economic challenges, these investment vehicles are likely to remain an attractive option for investors looking to protect and grow their wealth in the times ahead,” said Jateen Trivedi, Vice President Research Analyst at LKP Securities.
According to Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities, gold futures on the MCX have declined by 1.69% or Rs 1,016 per 10 grams in June.
“They were up by 7.75% or Rs 4,259 on the year-to-date basis as on Tuesday, June 13 on the closing price basis. Meanwhile, silver futures have declined nearly by Rs 69 or 0.10% in value terms in June while gaining by 3.86% or Rs 2,681 on the YTD basis,” Gupta said.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
– Sell MCX August Gold futures at Rs 59,500 with a stop loss of Rs 59,850 and price target of Rs 58,900
– Sell MCX July Silver futures at Rs 72,700 with a stop loss of Rs 72,450 and price target of Rs 71,500.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)