Bullion traded rangebound in the early morning session on Monday ahead of the crucial US Federal Reserve’s Federal Open Market Committee (FOMC) meeting which begins on Tuesday. The bias remained negative as the dollar index (DXY) was trading above the 101 mark.
The August gold futures were trading in the red at Rs 59,220 per 10 grams on the MCX when markets opened, down Rs 89 or 0.15% from Friday’s closing price. Meanwhile, September Silver futures were trading at Rs 74,722, lower by Rs 248 or 0.33%. Gold and silver futures ended in the red in the previous session. Gold ended with declines of 0.43%, while silver futures fell by 0.64%. Read More
On the Comex, gold futures were trading at $1,962.50 per troy ounce on Monday, down by $4.10 or 0.21% while silver futures were trading at $24.845, lower by $0.010 or 0.040%.
Praveen Singh – Associate Vice President, Fundamental Currencies and Commodities at Sharekhan expects gold to remain largely range-bound ahead of the US Federal Reserve monetary policy decision. He sees support in Comex gold at $1,950 – $1,935, while resistance at $1,988- $2,000.
“Bullions daily charts are now showing profit booking, trading at overbought zone. Momentum Indicator RSI is also indicating the same. So, traders are advised to book profit in longs and can create fresh short positions in gold and silver near residence level one with the stop loss at resistance level two and book near given support levels,” Amit Khare, Associate Vice President at Ganganagar Commodity Limited (GCL) said.
He sees support at Rs 59,000 – Rs 58,800 and resistance at Rs 59,600 – 60,000. As for silver futures, support is seen at Rs 74,500 – Rs 74,000 and resistance at Rs 75,600 – Rs 76,200.
Gold August futures have support at Rs 59,350 – Rs 59,200 and resistance Rs 59,750 – 60,060. Meanwhile, Silver September futures have support Rs 75,000 – Rs 74,500 and resistance at Rs 75,900 – Rs 77,000, Khare said.Anuj Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities expects DXY to remain in a range, adding that it would not allow gold to take any decisive action direction.
Gold futures on the MCX have gained by 1.93% or Rs 1,123 per 10 grams on a month-to-date basis, Gupta said. They are up by 7.87% or Rs 4,326 on the year-to-date basis, he added. Meanwhile, silver futures have gained nearly by Rs 4,930 per kg or 7.04% in value terms in July while gaining by 8.04% or Rs 5,580 per kg on a YTD basis, the IIFL analyst said.
The price of physical gold in bullion markets in Delhi-NCR is around Rs 60,700 per 10 grams while that of Silver is Rs 77,000 per kg, Gupta said. Click to know more
Intraday Trading Strategy by Anuj Gupta
– Buy MCX August Gold futures at Rs 59,000 with a stop loss of Rs 58,650 and price target of Rs 59,600
– Buy MCX September Silver futures at Rs 74,000 with a stop loss of Rs 73,300 and price target of Rs 76,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)