Gold prices on MCX for June futures contracts have increased by Rs 1,347 in the last 10 days amid sustained buying of the safe haven asset. In today’s session, gold prices opened at Rs 72,010/10 grams, up by 0.22% or Rs 155 while MCX July silver contracts gained Rs 289 or 0.34% to Rs 85,175 per kg.
Despite recent pressures, gold prices have risen 13% this year, reaching record levels last month, driven by central bank purchases and increased demand from China, as well as geopolitical tensions in the Middle East.
Gold’s price held steady above $2,335 per ounce early in Asia, following a 1% drop as traders awaited U.S. inflation data. This upcoming report is significant because it could influence future U.S. Federal Reserve monetary policies, particularly around interest rates.
Rising U.S. Treasury yields and expectations for continuing inflation have created challenges for gold, which does not earn interest. The market is also keeping an eye on upcoming producer prices data and a scheduled speech by Fed Chair Jerome Powell.
In the U.S. markets, spot gold was up 0.2% at $2,340.77 per ounce by 0306 GMT after falling 1% on Monday, while U.S. gold futures rose 0.2% to $2,346.30.Today, the US Dollar Index, DXY, was hovering near the 105.26 mark, rising 0.04 or 0.04%.“On the daily trading chart, gold has shown a bullish engulfing candlestick pattern, which suggests an optimistic future for its price. This uptrend is further supported by gold’s rebound off its 21-day exponential moving average (EMA), a technical indicator that is serving as its current support level,” said Neha Quereshi, senior technical analyst at Anand Rathi Commodities.Additionally, a positive divergence in the Relative Strength Index (RSI) enhances this bullish outlook, indicating growing strength in the market’s movements. Key resistance levels to keep an eye on are positioned at 72,400 and 72,900, On the downside, support is established at 71,300 and 70,800, Quereshi added.
Intraday Trading Strategy by Neha Quereshi:
– Buy MCX JUNE Gold futures at Rs 71700 with a stop loss of Rs 71200 and a price target of Rs 72300
– Buy MCX JULY Silver futures at Rs 84800 with a stop loss of Rs 83800 and a price target of Rs 86800
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)