Gold traded with a positive bias on Friday even as the dollar index displayed strength. Over the last five trading sessions, the DXY has strengthened by 0.63%.
The August gold futures were trading with gains at Rs 59,510 per 10 grams on the MCX when markets opened, up Rs 107 or 0.18% from Thursday’s closing price. Meanwhile, September Silver futures were trading at Rs 73,879, higher by Rs 132 or 0.18%. Track prices here ()
Gold and silver futures ended with sharp declines in the previous session. While gold fell by over Rs 500 or 0.84%, silver futures fell by 2.05% or by Rs 1,545.
On the Comex, Gold futures were trading at $1,949.20 per troy ounce on Friday, up by $3.50 or 0.54% while Silver futures trading at $24.285, lower by $0.082 or 0.340%.
“MCX Gold and Silver gave a negative closing on Thursday due to the positive US economic data. Bullion daily charts are now trading at the demand zone and the momentum indicator RSI is also indicating the reversal from the bottom level. Traders are advised to make fresh buy positions in Gold and Silver near given support level one with the stop loss of support level two and book near given resistance levels,” Amit Khare Associate Vice President at Ganganagar Commodity said.
Khare sees support in Gold August futures at Rs 58,800 – Rs 58,500 and resistance at Rs 59,150 – 59,300. As for Silver futures, support is seen at Rs 73,300 – Rs 72,700 and resistance at Rs 74,000 – 74500.
“Fundamentals of gold are presently weak as the Fed rate cut possibility has become the only game in town. With encouraging GDP data and a tight job market, gold looks currently overpriced,” Praveen Singh – Associate Vice President, Fundamental Currencies and Commodities at Sharekhan said.Singh expects gold futures to trade with a bearish bias and he sees support at $1,935 – $1,900 while resistance at $1,965 – $1,987.
Gold futures on the MCX have gained by 1.38% or Rs 800 per 10 grams on a month-to-date basis, Gupta said. They are up by 7.28% or Rs 4,003 on a year-to-date basis, he added. Meanwhile, silver futures have gained nearly by Rs 3,579 or 5.37% in value terms in July while gaining by 6.36% or Rs 4,409 on the YTD basis, the IIFL analyst said.
Price of physical gold in bullion markets in Delhi-NCR is around Rs 60,200 per 10 gram while that of Silver is Rs 75,700 per kg, Gupta said. Click to know more
Intraday Trading Strategy by Anuj Gupta
– Sell MCX August Gold futures at Rs 59,100 with a stop loss of Rs 59,400 and price target of Rs 58,600
– Sell MCX September Silver futures at Rs 74,500 with a stop loss of Rs 75,100 and price target of Rs 73,300.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)