Gold August futures and silver September futures on MCX opened flat today after experiencing sharp declines yesterday post a cut in the custom duty announced in the Union budget. The former opened 0.38% or Rs 262 higher at Rs 68,772 per 10 gram while the latter was up by 0.38% or Rs 321 at Rs 85,240/kg.
Gold prices dipped by Rs 4,300 per 10 gram on Tuesday, slipping to 4-month lows and silver prices fell by Rs 4,200/kg, slipping to nearly its 3-month lows in the domestic markets.
Gold and silver showed heavy sell-off in the domestic markets after 9% duty cuts in the budget. Post the budget, gold and silver settled weaker in the domestic market but positive in the international market. Gold August futures contract settled at Rs 68,510 per 10 grams with a loss of 5.79% and silver September futures contract settled at Rs 84,919 per kilogram with a loss of 4.80%.
Gold and silver prices fell in the domestic markets after Finance Minister Nirmala Sitharaman cut import duty on gold and silver from the existing rate of 15.0% to 6.0%. Huge cuts in the import duty by 9.0% create havoc in the domestic markets.
Today, the US Dollar Index, DXY, was hovering near the 104.49 mark, rising 0.04 or 0.05%.“On the daily timeframe, MCX Gold August has broken below its rising trend line, forming a bearish engulfing candlestick pattern that suggests bearish sentiments. It’s currently trading below its 100-day EMA, indicating weakness. The RSI is showing negative divergence, further indicating weakness. Resistance levels are around 69,200 and 70,000, while support levels are around 68,000 and 67,200,” said Neha Qureshi Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.Intraday Trading Strategy by Neha Qureshi:
- Sell MCX August gold futures at Rs 68,500 with a stop loss of Rs 69,200 and a price target of Rs 67,500
- Sell MCX September silver futures at Rs 85,000 with a stop loss of Rs 86,000 and a price target of Rs 83,000
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