Gold futures traded flat in Tuesday’s early trade on a stronger dollar index (DXY). The bias, however, remained negative.
The August Gold futures were trading at Rs 58,275 per 10 grams in the opening trade, down by Rs 2 while September Silver futures were marginally higher by Rs 31 per kg at Rs 70,320. Gold futures ended with minor gains on Monday at Rs 58,270, up Rs 59, while silver futures closed at Rs 70,274 per kg, higher by Rs 244. Track prices here (Hyperlink: https://economictimes.indiatimes.com/commoditysummary/symbol-GOLD.cms)
On the Comex, gold futures were trading at $1,929.40 per troy ounce, down $0.10 or 0.01% while silver futures were at $23.110, down $0.002 or 0.010%.
The Street is waiting for the FOMC minutes of the June meeting, due for a release on Wednesday, July 5 to get some idea about which way the Fed is likely to go ahead in its next policy scheduled later this month. The anticipation of another rate hike is strengthening the dollar.
“Yellow metal gave back most of its gains to end the day with a minuscule gain of 0.10% at $1,921. The rally fizzled out on counterintuitive movement in the US yields as the treasury notes fell on Monday. The two-year yields closed at 4.94%, which is roughly 1% higher over Friday’s closing,” Praveen Singh, Assistant Vice President, Fundamental Currencies and Commodities Analyst at Sharekhan said.
He expects bullion to trade in a narrow range as the US markets will observe July 4 holiday to mark their Independence Day. “The yellow metal is expected to keep its familiar range of $1,900-$1,950 in the near term. The upcoming US nonfarm payroll report due Friday will be the most crucial factor for gold. The metal may grind higher to the upper end of the current range,” Singh said.
Gold futures on the MCX have gained 6% or Rs 3,298 per 10 grams on a year-to-date basis, Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities told ET Markets. Meanwhile, silver futures prices have increased by nearly Rs 254 or 0.36% in value terms 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 72,000 per kg. Click to know more (hyperlink: https://economictimes.indiatimes.com/markets/gold-rate-in-delhi-today)
Intraday Trading Strategy by Anuj Gupta
– Buy MCX August Gold futures at Rs 58,000 with a stop loss of Rs 57,700 and price target of Rs 58,500
– Buy MCX September Silver futures at Rs 69,500 with a stop loss of Rs 68,900 and price target of Rs 70,700.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)