Meanwhile, silver July futures contracts have consolidated above the Rs 1 lakh mark and opened slightly lower by Rs 164 or 0.15% at Rs 1,06,400/kg.
On Monday, gold and silver settled on a mixed note in the domestic and international markets. Gold August futures contract settled at Rs 99,178 per 10 grams with a loss of 1.09% while silver July futures contract settled at Rs 1,06,564 per kilogram with a gain of 0.07%.
Gold and silver showed very high price volatility in the international markets amid the escalation of the Israel-Iran war. Both countries are aggressively making air strikes on each other, and tensions have increased in the Middle East region.
However, the U.S. President said on Monday to end of war between Israel and Iran soon, and after his statements, precious metals reacted negatively.
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“Gold declined on Monday, retreating from an eight-week high as traders locked in profits. Spot gold dropped 1.2% to $3,392.86 an ounce after earlier reaching its highest level since April 22. U.S. gold futures closed 1% lower at $3,417.30,” noted Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.The decline follows a 1% rally on Friday, driven by heightened geopolitical tensions between Israel and Iran and anticipation of the Federal Reserve’s policy meeting, where rates are expected to remain unchanged, she noted.“Gold shows profit taking from higher levels, and silver prices are also off day’s high. Traders also booked profits in long positions of gold ahead of the Fed monetary policy meetings,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Global uncertainty and geopolitical tensions could support the prices of precious metals.
Today, the US Dollar Index, DXY, was hovering near the 98.18 mark, gaining 0.18 or 0.18%.
“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geo-political tensions and Fed monetary policy meetings but gold prices could hold its key support level of $3,284 per troy ounce and silver prices could also hold $34.00 per troy ounce levels on a weekly closing basis.,” he added.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 98,550-97,700 and resistance at Rs 99,800-1,00,400
- Silver has support at Rs 1,05,800-1,05,000 and resistance at Rs 1,07,200-1,08,000
Jain suggests buying silver on dips around Rs 1,05,800 with a stop loss of Rs 1,04,750 for the target of 107000-107700.
Technically, Neha Qureshi noted that gold maintains a bullish outlook as the 14-day RSI rises above 57.50. A break above $3,440 could target $3,453 and possibly the record high of $3,500. On the downside, support is at $3,377 (23.6% Fibonacci level), with further support at the 21-day SMA near $3,341 if $3,350 fails.
Gold maintains a bullish outlook as the 14-day RSI rises above 57.50. A break above $3,440 could target $3,453 and possibly the record high of $3,500. On the downside, support is at $3,377 (23.6% Fibonacci level), with further support at the 21-day SMA near $3,341 if $3,350 fails.
Intraday Trading Strategy by Neha Qureshi
- Buy MCX August Gold futures at Rs 99,000 with a stop loss of Rs 98,700 and a price target of Rs 99,700
- Buy MCX July silver futures at Rs 1,06,000 with a stop loss of Rs 1,05,000 and a price target of Rs 1,08,000.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,952/8 grams while pure gold (24 carat) prices stand at Rs 61,760/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,048/8 grams while pure gold (24 carat) prices stand at Rs 60,752/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,960/8 grams while pure gold (24 carat) prices stand at Rs 60,744/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,960/8 grams while pure gold (24 carat) prices stand at Rs 60,776/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
