Gold Price Today: Yellow metal drops Rs 656/10 gram; silver slips below Rs 80,000/kg

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Amid a decline in safe-haven buying due to reduced geopolitical tensions, gold prices on MCX for June futures fell by Rs 656 or 0.92% to trade at Rs 70,541 per 10 grams while MCX May silver contracts dipped by Rs 710 or 0.9% to Rs 79,869 per kg.

Gold prices extended their fall following the largest single-day loss in nearly two years. Additionally, the likelihood of the Federal Reserve keeping interest rates higher for longer has also influenced gold prices. This is because, unlike other investments, gold does not earn interest. Investors are now watching the upcoming U.S. economic reports, including inflation data, which could indicate future monetary policy directions.

On Monday, gold and silver settled on a negative note wherein gold ended Rs 1,300 down at Rs 71,522/10 grams while silver slipped Rs 2,318 or 2.7 % at Rs 81,189 per kg.

In recent weeks, investors have taken cautious positions, fearing an escalation in the conflict in the Middle East over the previous weekend.

In a further reversal of Friday’s “risk off” mood, gold dropped 2% in the US markets to $2,341.9 an ounce, its biggest daily percentage fall in over a year, though it is still not too far from its April 12 record high of $2,431.29.

Today, the US Dollar Index, DXY, was hovering near the 106.11 mark, rising 0.03 or 0.03%.“On the daily chart, the June gold futures have formed a bearish engulfing candlestick pattern not able to sustain above 73300 which is a strong resistance zone suggesting a potential downturn. The Relative Strength Index (RSI) has entered the overbought territory and is displaying negative divergences, which supports the bearish outlook. The key resistance levels to watch are at 71,800 and 72,295, while the support levels are situated at 70,700 and 70,200,” states Neha Qureshi, senior technical & derivative analyst, Anand Rathi Commodities & Currencies.

Intraday strategy by Neha Quereshi:

– Sell MCX JUNE Gold futures at Rs 71100 with a stop loss of Rs 71500 and a price target of Rs 70700

– Sell MCX MAY Silver futures at Rs 80500 with a stop loss of Rs 81500 and a price target of Rs 78500

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

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