Ahead of US economic data, gold prices of MCX August futures contracts opened flat at Rs 71,712 per 10 grams on Tuesday, while silver July futures contracts opened at Rs 88,858/kg falling by Rs 141 or 0.16%.
On Monday, gold and silver settled on a mixed note in the international as well as the domestic markets. On MCX, the gold August futures contract settled at Rs 71,791 per 10 grams with a gain of 0.29%, and the silver July futures contract settled at Rs 88,999 per kilogram with a loss of 0.16%.
Gold prices showed some pullback amid the dollar index showing mild profit-taking from their highs, but silver remained under pressure due to downbeat Chinese manufacturing data.
Gold and silver traded in a tight range ahead of the key US economic data. The US core PCE price index data are due later this week and are the main gauge for the US Fed for inflation measurement. The tone of the Fed officials after these data could give further directions to the bullion markets.
Today, the US Dollar Index, DXY, was hovering near the 105.41 mark, falling 0.06 or 0.06%.“On the daily chart, MCX Gold August is encountering resistance from its declining trend line and has formed a Doji candlestick pattern, indicating indecisiveness. It is currently trading below its 21-day EMA, which signals weakness. The RSI is showing negative divergence, further indicating a potential decline. Resistance levels are around 71,900 and 72,400, while support levels are around 71,500 and 71,200,” said Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.Intraday Trading Strategy by Neha Qureshi:
Sell MCX August gold futures at Rs 71,700 with a stop loss of Rs 72,200 and a price target of Rs 71,200
Sell MCX July silver futures at Rs 88,900 with a stop loss of Rs 90,000 and a price target of Rs 86,700.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)