Gold traded range bound in the early trade on Monday ahead of the US Federal Reserve’s Federal Open Market Committee (FOMC) which begins later in the day. The bias remained negative as the dollar index (DXY) was trading above the 101 mark and only strengthened in the last session leading to declines in bullion prices.
The August gold futures were trading with minor gains at Rs 59,120 per 10 grams on the MCX when markets opened, up Rs 44 or 0.07%. Meanwhile, September Silver futures were trading at Rs 74,323, up Rs 227 or 0.31%. Click to know more
Gold and silver futures ended in the red in the previous session. While gold ended with a decline of 0.40%, silver futures fell sharply by 1.15%.
On the Comex, Gold futures were trading at $1,963.70 per troy ounce on Tuesday, up by $1.50 or 0.08% while Silver futures trading at $24.645, higher by $0.064 or 0.260%.
“MCX Gold and Silver gave a negative closing on Monday. Bullion’s daily charts are showing profit booking. Momentum Indicator RSI also indicates the same, So traders are advised to book profit in longs and they can create fresh short positions in Gold and Silver near the given resistance level one with the stop loss at the resistance level two and book profits near the given support levels,” Amit Khare, Associate Vice President at Ganganagar Commodity said.
He sees support on Gold futures at Rs 58,900 – Rs 58,800 and resistance at Rs 59,300 – Rs 59,600. As for Silver futures, support is seen at Rs 73,600 – Rs 73,200 and resistance at Rs 74,800 – Rs 75,400.
Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities expects DXY to further go down and test 97 levels adding that it would augur well for the yellow metal. “Gold futures on the MCX have gained 1.54% or Rs 898 per 10 grams on a month-to-date basis. They were up by 7.46% or Rs 4,101 on a year-to-date (YTD) basis as of Monday,” Gupta said. “Meanwhile, Silver futures have gained Rs 4,088 or 5.84% in value terms in July while gaining 6.83% or Rs 4,738 on a YTD basis,” the IIFL analyst said.
The price of physical gold in bullion markets in Delhi-NCR is around Rs 60,500 per 10 grams while that of Silver is Rs 76,000 per kg, Gupta said.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX August Gold futures at Rs 59,000 with a stop loss of Rs 58,650 and a price target of Rs 59,600
– Buy MCX September Silver futures at Rs 74,000 with a stop loss of Rs 73,300 and a 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)