Bullion traded in the red in early trade on Monday amid an attempt by the dollar index (DXY) to claw back to the 100 mark. The DXY was trading up around 99.98 against a basket of 6 major currencies with hopes of the US Federal Reserve close to ending its monetary tightening cycle.
The August gold futures were trading Rs 157 or 0.26% lower at Rs 59,159 per 10 grams on the MCX around 9:35 am while September Silver futures were at Rs 75585, up Rs 383 or 0.50%. Gold and silver futures ended in the green in Friday’s trading session. Track prices here
On the Comex, gold futures were trading at $1,956.10 per troy ounce on Monday, down $8.30 or 0.42% while silver futures were at $25.040, higher by $0.154 or 0.610%.
“Spot gold closed with a gain of 0.16% at $1960.19 as investors continue to trade on falling inflation and the Federal Reserve rate hike pause themes. Bond yields continued to decline in exaggerated moves as investors ignored the drop in the US weekly jobless claims and focused on the US PPI data missing the forecast,” Praveen Singh – Associate Vice President, Fundamental Currencies and Commodities at Sharekhan said.
Singh is of the view that the present weakness in the Dollar Index and bond rally may continue into the run-up to the US Federal Reserve’s monetary policy decision due on July 26. Gold is expected to find good support into the dips and bias remains with the present range being $1,930 to $1,980, this analyst said adding that the interim support is at $1,950.
Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities expects DXY to further go down and test 97 levels which he sees as auguring well for the yellow metal.
Gold futures on the MCX have gained by 1.99% or Rs 1,159 per 10 grams on a month-to-date basis, Gupta said. They are up by 7.93% or Rs 4,362 on a year-to-date basis. Meanwhile, silver futures have gained nearly Rs 7,590 or 8.53% in value terms in July while rising 9.54% or Rs 6,620 on a YTD basis, the IIFL analyst said.The price of physical gold in bullion markets in Delhi-NCR is around Rs 61,300 per 10 grams while that of Silver is Rs 77,800 per kg, Gupta said. Click to know more
Intraday Trading Strategy by Anuj Gupta
– Buy MCX August Gold futures at Rs 59,000 with a stop loss of Rs 58,700 and price target of Rs 59,600
– Buy MCX September Silver futures at Rs 75,400 with a stop loss of Rs 74,800 and price target of Rs 76,200.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)