In the month of August, gold prices gained Rs 2,200 per 10 grams, while silver gained Rs 3,000 per kilogram.
Gold and silver closed on a positive note in both the international and domestic markets on Thursday. The October gold futures contract closed at Rs 72,188 per 10 grams with a gain of 0.62% and the December silver futures contract closed at Rs 87,049 per kilogram with a gain of 0.62%.
Gold and silver fell in early trading amid gains in the dollar index and 10-year U.S. bond yields. Gold held near a record high as traders awaited U.S. inflation data that could offer clues about the Federal Reserve’s rate-cutting path.
Gold has gained more than 20% this year, supported by growing confidence that the US central bank is on the cusp of cutting interest rates for the first time since 2020. Solid over-the-counter buying and strong safe-haven demand amid conflicts in the Middle East and Ukraine also helped the advance. Bullion was trading around $2,520 an ounce in Asian hours, on track for a second monthly gain, ahead of the core personal consumption expenditures price index due later on Friday. The report is expected to show the three-month annualised rate of core inflation eased to 2.1%, just above the central bank’s 2% target, which would support the argument for rate cuts. Lower borrowing costs typically benefit non-interest-paying gold. Today, the US dollar index, DXY, was hovering around the 103.22 mark, down 1.20 or 0.15%. “Traders were also evaluating Thursday’s upbeat US growth data, which suggested the Fed will be able to engineer a so-called soft landing for the economy as it prepares to ease policy next month,” said Neha Qureshi, senior technical and derivatives analyst at Anand Rathi Commodities & Currencies.
“On the daily chart, MCX October gold futures are trading above an ascending trend line, forming a pattern of higher highs and higher lows, indicating a bullish sentiment. The price is currently trading above its 21-day and 50-day EMA, and the RSI is showing a positive divergence, indicating a bullish outlook. Resistance levels are identified around 72,300 and 72,900, while support is seen around 71,400 and 70,900,” Qureshi added.
Neha Qureshi Intraday Trading Strategy:
- Buy MCX October Gold Futures at Rs 72,100 with a stop loss of Rs 71,800 and target price of Rs 72,500.
- Buy MCX September Silver Futures at Rs 84,900 with a stop loss of Rs 83,900 and target price of Rs 86,900.
(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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