Gold October futures contracts at MCX opened flat on Friday at Rs 71,905/10 gram, which is down by 0.39% or Rs 283 while silver December futures contracts were trading at Rs 86,634/kg, down by 0.48% or Rs 415.
In the month of August, the prices of gold have gained Rs 2,200/10 gm while silver has gained Rs 3,000 per kilogram.
On Thursday, gold and silver settled on a positive note in the international as well as the domestic markets. Gold October futures contract settled at Rs 72,188 per 10 grams with a gain of 0.62% and silver December futures contract settled at Rs 87,049 per kilogram with a gain of 0.62%.
Gold and silver fell in the early trading session amid gains in the dollar index and the U.S. 10-year bond yields. Gold held near a record high as traders waited for a US inflation print that may offer clues on the Federal Reserve’s rate-cutting path.
Gold is up more than 20% this year, supported as confidence has grown the US central bank is about to cut interest rates for the first time since 2020. Robust over-the-counter purchases and strong haven demand amid conflicts in the Middle East and Ukraine also helped the advance.Bullion was trading around $2,520 an ounce in Asia hours —on pace for a second monthly gain — ahead of the core personal consumption expenditures price index due later Friday. The report is expected to show the three-month annualized rate of core inflation down to 2.1%, just above the central bank’s 2% target, which would support the case for rate cuts. Lower borrowing costs typically benefit gold, which doesn’t pay interest.Today, the US Dollar Index, DXY, was hovering near the 103.22 mark, falling 1.20 or 0.15%.“Traders were also assessing Thursday’s upbeat US growth data, which suggested the Fed will be able to engineer a so-called soft landing for the economy as it prepares to ease policy next month,” said Neha Qureshi Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.
“On the daily chart, MCX Gold October futures are trading above a rising trend line, forming a higher high and higher low pattern, which signals bullish sentiment. The price is currently trading above its 21 & 50-day EMA, and the RSI shows positive divergence, indicating a bullish outlook. Resistance levels are identified around 72,300 and 72,900, while support is seen around 71,400 and 70,900,” Qureshi added.
Intraday Trading Strategy by Neha Qureshi:
- Buy MCX October gold futures at Rs 72,100 with a stop loss of Rs 71,800 and a price target of Rs 72,500.
- Buy MCX September silver futures at Rs 84,900 with a stop loss of Rs 83,900 and a price target of Rs 86,900.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)