Bullion traded in the green on the MCX in Wednesday’s early trade aided by an almost flat Dollar Index (DXY). The DXY was hovering around 102.50, though the bias was positive. Meanwhile, gold and silver took the opposite trajectory on Comex. While the yellow metal traded on a positive note, silver futures declined. Both gold and silver have remained range bound for many sessions now.
The August Gold futures were trading at Rs 58,180 per 10 grams in the opening trade, up Rs 73 or 0.13% from Tuesday’s closing price while July Silver futures were higher by Rs 158 per kg or 0.23% at Rs 69,499. Track prices here
On the Comex, gold futures were trading at $1,924.20 per troy ounce, up by $0.40 or 0.02% while Silver futures were trading at $22.930, lower by $0.030 or 0.13%.
“The softer US Dollar cushioned losses in gold which closed 0.49% lower at $1,913.25. Two-year yields at 4.764% were up 9.42% on the day as the Dollar Index slid 0.18% to 102.51,” Praveen Singh – Associate Vice President, Fundamental Currencies and Commodities at Sharekhan said.
Singh said that the outlook for gold remains weak and he sees key support for the metal at around $1,900 followed by $1,870, while $1,940-$1,950 is a key supply zone.
Gold futures on the MCX have declined by 3.59% or Rs 2,162 per 10 grams in June, Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities told ETMarkets. They are up by 5.66% or Rs 3,113 on a year-to-date basis, he said. Meanwhile, silver futures have declined nearly Rs 2,690 or 3.73% in value terms in June while they have lost 0.09% on a YTD basis, Gupta added.
The physical price of gold in India stood at Rs 59,500 per 10 grams while that of silver at Rs 71,000 per kg. Click to know moreIntraday Trading Strategy by Anuj Gupta
– Sell MCX August Gold futures at Rs 58,300 with a stop loss of Rs 58,700 and price target of Rs 57,700
– Buy MCX July Silver futures at Rs 68,500 with a stop loss of Rs 68,000 and price target of Rs 70,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)