MCX Gold futures traded flat on the MCX on Thursday as traders preferred to hold their bets on the yellow metal ahead of the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting outcome, scheduled for next week.

The August Gold futures were trading at Rs 59,511 per 10 grams on MCX, up Rs 8. Meanwhile, July Silver futures rose 251 or 0.35% per kg to Rs 71,976.

On Comex, Gold futures were trading at $1,960 per troy ounce, up $1.60 or 0.08% while silver futures were trading at $23.665 per troy ounce, higher by $0.136 or 0.580%.

The dollar index (DXY) remained steady above 104 against the basket of six top currencies.

Investors remain cautious before the outcome of US consumer inflation data and the FOMC policy meeting due next week, which could be a major trigger for precious metals, Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities said.

MCX Gold August future has support at Rs 59,180 per 10 grams and resistance at Rs 59,875 per 10 grams, the HDFC Securities analyst said.
He said that he expects gold prices to correct further if the price breaks the key support level of $1,933 per ounce on Comex. The spot is seen at $1,935-$1,919 per ounce and resistance at $1,960-$1,975 per ounce, Gandhi added.”Rate hike fears may keep gold under pressure as the upcoming FOMC meeting on June 13-14 is the first such meeting in a long time which carries so much uncertainty about the Federal Reserve’s monetary policy decision,” Praveen Singh – Associate Vice President, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas said.

Gold futures on the MCX have declined by 1.25% or Rs 752 per 10 grams in June, Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities said. They are up by 8.23% or Rs 4,523 on a year-to-date basis. Meanwhile, silver futures have lost nearly Rs 286 or 0.40% in value terms in June while gaining 3.55% or Rs 2,464 on the YTD basis, Gupta added.

Price of physical gold in Delhi and Ahmedabad is around Rs 61,000 per 10 grams while that of silver is Rs 73,000 per kg, Gupta of IIFL Securities said.

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Intraday Trading Strategy by Anuj Gupta

– Buy MCX August Gold futures at Rs 59,300 with a stop loss of Rs 59,050 and price target of Rs 59,700

– Buy MCX July Silver futures at Rs 71,500 with a stop loss of Rs 70,800 and price target of Rs 72,500.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)