Gold prices have fallen by Rs 400 per 10 grams in the last three days, while silver has fallen by Rs 750 per kilogram.
Gold and silver closed on a weaker note in the domestic and international markets on Thursday. The October gold futures contract closed at Rs 71,194 per 10 grams with a loss of 0.89% and the September silver futures contract closed at Rs 83,736 per kilogram with a loss of 1.33%.
Gold prices fell below $2,500 on Thursday after minutes from the Federal Reserve’s latest meeting hinted at a likely rate cut in September. The US dollar recovered slightly and 10-year Treasury bond yields rose ahead of Fed Chair Jerome Powell’s speech at Jackson Hole.
Minutes from the Federal Reserve’s July meeting revealed that while the interest rate was kept between 5.25% and 5.50%, most officials believed that a rate cut might be necessary at the next meeting if economic data supported it. In addition, the Labor Department reported a significant downward revision to the 818,000 jobs created over the past year, the largest adjustment since 2009. This data has fueled expectations of a rate cut in September, although the probability of a 0.5% cut has slightly decreased. Today, the US dollar index, DXY, hovered around the 101.33 mark, down 0.18 or 0.18%. “On the daily chart, the October MCX gold futures are trading above an ascending trend line, forming a pattern of higher highs and higher lows, which indicates a bullish sentiment. The price is currently trading above its 21-day and 50-day EMA, and the RSI is showing a positive divergence, which indicates a bullish outlook. “Resistance levels are identified around 71,500 and 71,900, while support is seen around 70,800 and 70,300,” said Neha Qureshi, Senior Technical and Derivatives Analyst at Anand Rathi Commodities & Currencies.
Neha Qureshi Intraday Trading Strategy:
- Buy MCX October Gold Futures at Rs 71,200 with a stop loss of Rs 70,800 and target price of Rs 71,900.
- Buy MCX September Silver Futures at Rs 83,700 with a stop loss of Rs 82,700 and target price of Rs 85,700.
(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of the Economic Times)
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