Gold traded in choppy waters ahead of the release of the US Federal Reserve’s July FOMC meeting minutes. Both Gold and Silver futures fell in the early trade on Monday. The yellow metal was trading at its five-week lows as Dollar Index (DXY) and US bond yields shot up.
The DXY was trading with a positive bias, near the 103 mark against a basket of six top currencies.
The MCX October gold futures were trading with losses at Rs 58,903 per 10 grams on the MCX in the opening trade, down Rs 3 or 0.01%. Meanwhile, September Silver futures were trading at Rs 69,840, up Rs 136 or 0.19%. On Friday, Gold futures ended with minor gains of Rs 53 per 10 grams while Silver futures fell Rs 14 per kg. Click to know more
On the Comex, Gold futures were trading at $1,946.10 per troy ounce, down $2.80 or 0.14% while Silver futures were trading at $22.760, down $0.061 or 0.270%.
On DXY, Mohammed Imran, Research Analyst at Sharekhan said that the dollar index was drifting towards the resistance of 103 while the 10-year UST yields were hovering near 4.18%, their highest since November 2022, and may further see spot gold prices pushing towards support of $1,900. “Without major economic data, we expect gold prices to hold a range-bound trading session for the day. Support is at $1,900/$1,890 while resistance is at $1,930/$1,950,” Imran said.
“A stronger dollar and rising yields have pressured the price of gold and silver, which has resulted in significant price declines over the past week. Investors’ bets that US interest rates will stay higher for longer this year contributed to traders’ shift towards the dollar as risk appetite declined. This week, US CPI data is an important trigger that can either push the prices southward by 2-3% or cause a rebound. Rs 58,000 for Gold and Rs 68,000 for Silver could act as solid support in the near term,” Prithviraj Kothari, Managing Director & CEO of RiddiSiddhi Bullions Limited (RSBL) said.
On technical charts, bullion’s daily charts are trading near an oversold zone and could see a short covering rally, Amit Khare Associate Vice President at Ganganagar Commodity Limited (GCL) Broking said. “Momentum Indicator RSI also indicating the same and so the traders are advised to make fresh buy positions in gold and silver near given support level with a stop loss at the support level and should look to book profit near given resistance levels,” Khare said.He sees support in October gold futures at Rs 58,800 – 58,600 and resistance at Rs 59,200 – 59,500. As for Silver September futures, support is seen at Rs 69,500 – 69,000 and resistance at Rs 70,500 – Rs 71,000.
Intraday Trading Strategy by Neha Qureshi
Sell MCX October Gold futures at Rs 58,950 with a stop loss of Rs 59,200 and a price target of Rs 58,450.
Sell MCX September Silver futures at Rs 70,100 with a stop loss of Rs 71,200 and a price target of Rs 68,200.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)