Gold prices have recovered by nearly Rs 900 from its low of Rs 67,400 per 10 grams in Thursday’s session while silver has been trading flat since then.
Gold struggled for momentum on Tuesday as investors looked for more cues on when the U.S. central bank will cut interest rates from this week’s policy meeting and data releases. Gold prices have edged lower for the second day as the US dollar steadied.
The Federal Reserve is expected to hold rates steady at the end of its two-day meeting starting later in the day, but open the door to policy easing as early as September by acknowledging inflation has edged nearer to its 2% target.
Today, the US Dollar Index, DXY, was hovering near the 105.95 mark, falling 0.11 or 0.10%.Investors are also likely to keep a tab on a series of employment data scheduled to be released this week, with the main focus on the nonfarm payrolls report due on Friday.“The recent increase in gold-backed exchange-traded funds indicates growing interest in the precious metal,” said Neha Qureshi Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.However, silver, platinum, and palladium are down, with all three metals set for monthly declines.
“The daily chart of Gold October Futures on MCX highlights a significant bearish trend, with the current price at ₹68,626, down by 0.01%. The price recently found support around ₹67,800 and is showing signs of a potential rebound. However, it faces resistance near the 50-day EMA at ₹71,741. The moving averages indicate a short-term bearish trend, as the 50-day EMA remains above the current price. The Relative Strength Index (RSI) is at 32.58, approaching the oversold zone, suggesting the possibility of a rebound. The MACD is in negative territory, with the MACD line below the signal line, confirming bearish momentum. Despite the overall bearish outlook, the proximity to the oversold zone as indicated by the RSI may prompt a short-term recovery,” Qureshi added.
Intraday Trading Strategy by Neha Qureshi:
- Buy MCX August Gold futures at Rs 68,600 with a stop loss of Rs 68,100 and a price target of Rs 69,300.
- Buy MCX September silver futures at Rs 81,200 with a stop loss of Rs 80,200 and a price target of Rs 83,200.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)