On Tuesday, gold and silver settled on a positive note in the domestic market, while settling on a mixed note in the international markets. Gold August futures contract settled at Rs 99,541 per 10 grams with a gain of 0.37% and silver July futures contract settled at Rs 1,08,995 per kilogram, rising2.28%.
Due to weakness in the rupee, domestic markets settled on a positive note. Gold and silver showed very high price volatility, settling on a mixed note in the international markets amid geopolitical tensions and ahead of the FOMC meeting outcomes.
Escalation in the Israel-Iran war supported safe-haven buying for precious metals, but downbeat U.S. retail sales and core retail sales data limit gains. Chinese consumer demand for gold also cooled off in May and limited the gains.
“Gold extended its fall at Comex divisions but silver prices extended their gains and prices crossed $37 per troy ounce levels for the first time since February 2012,” noted Manoj Kumar Jain of Prithvifinmart Commodity Research.
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He added that weakness in the rupee is supporting gold and silver prices in the domestic markets. Today, the US Dollar Index, DXY, was hovering near the 98.66 mark, falling 0.16 or 0.16%.“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.While Gold’s movement remains erratic, silver has shown steadier performance, making it a more attractive option in the short term.
“All eyes now turn to the Fed meeting outcome tonight, with a particular focus on the Dot Plot projections for clearer guidance on market trends,” said Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 99,100-98,650 and resistance at Rs 99,850-1,00,200
- Silver has support at Rs 1,08,000-1,07,200 and resistance at Rs 1,09,750-1,10,600
Jain suggests buying silver on dips around Rs 1,08,000 with a stop loss of Rs 1,07,200 for a target of Rs 1,10,000.
Intraday Trading Strategy by Neha Qureshi:
- Buy MCX August Gold futures at Rs 99,500 with a stop loss of Rs 99,200 and a target of Rs 1,00,000
- Buy MCX July Silver futures at Rs 1,09,000 with a stop loss of Rs 1,07,000 and a target of Rs 1,12,000.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 58,320/8 grams while pure gold (24 carat) prices stand at Rs 62,192/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,256/8 grams while pure gold (24 carat) prices stand at Rs 61,064/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,864/8 grams while pure gold (24 carat) prices stand at Rs 60,632/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 57,184/8 grams while pure gold (24 carat) prices stand at Rs 60,984/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
