Gold rate today: Gold prices on the MCX for August futures contracts opened flat at Rs 71,547 per 10 grams, ahead of the US CPI data which will be released later today. MCX July silver contracts have experienced a significant decline of Rs 6,800 in June, opening today at Rs 89,317 per kg.
According to an ET report, bullion has experienced a 12% increase this year, driven by expectations of Fed rate cuts, safe-haven demand, and buying by central banks and Chinese consumers.The reason why lower interest rates benefit gold is because it doesn’t pay interest.
The gold market remained steady following a two-day gain, as investors eagerly awaited the US inflation data and the US Federal Reserve’s interest rate decision on Wednesday.
Since the US economic data has come in stronger-than-expected and inflation continues to be high, hopes for quick rate cuts have been tempered. The Fed is widely anticipated to maintain interest rates at their current level, with market participants focusing on future policy guidance.
Also Read | Why did RBI bring 100 tonnes of gold reserves back to India? RBI governor Shaktikanta Das explains
As of 8:55 a.m. in Singapore, spot gold experienced a slight decrease of 0.1%, settling at $2,314.23 an ounce. This comes after the precious metal recorded gains exceeding 1% over the past two trading sessions. Concurrently, the Bloomberg Dollar Spot Index witnessed a modest uptick of 0.1%. Other precious metals, including silver, platinum, and palladium, remained relatively stable with minimal fluctuations.
The US Dollar Index (DXY) was trading close to the 105.26 level, exhibiting a minor increase of 0.03 or 0.02%.
According to a Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies, “On the daily timeframe, MCX Gold (August) has broken down from its rising channel pattern and is trading near its breakdown level. The price is currently below the 21 EMA, which acts as resistance, indicating weakness. If the price breaks below 70,900, which is also the 50 EMA, we can expect further downside movement. Key resistance levels to watch are at 71,900 and 72,500, while support levels are at 70,900 and 70,082.”
Neha Qureshi, an analyst, has provided the following intraday trading strategy:
According to an ET report, bullion has experienced a 12% increase this year, driven by expectations of Fed rate cuts, safe-haven demand, and buying by central banks and Chinese consumers.The reason why lower interest rates benefit gold is because it doesn’t pay interest.
The gold market remained steady following a two-day gain, as investors eagerly awaited the US inflation data and the US Federal Reserve’s interest rate decision on Wednesday.
Since the US economic data has come in stronger-than-expected and inflation continues to be high, hopes for quick rate cuts have been tempered. The Fed is widely anticipated to maintain interest rates at their current level, with market participants focusing on future policy guidance.
Also Read | Why did RBI bring 100 tonnes of gold reserves back to India? RBI governor Shaktikanta Das explains
As of 8:55 a.m. in Singapore, spot gold experienced a slight decrease of 0.1%, settling at $2,314.23 an ounce. This comes after the precious metal recorded gains exceeding 1% over the past two trading sessions. Concurrently, the Bloomberg Dollar Spot Index witnessed a modest uptick of 0.1%. Other precious metals, including silver, platinum, and palladium, remained relatively stable with minimal fluctuations.
The US Dollar Index (DXY) was trading close to the 105.26 level, exhibiting a minor increase of 0.03 or 0.02%.
According to a Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies, “On the daily timeframe, MCX Gold (August) has broken down from its rising channel pattern and is trading near its breakdown level. The price is currently below the 21 EMA, which acts as resistance, indicating weakness. If the price breaks below 70,900, which is also the 50 EMA, we can expect further downside movement. Key resistance levels to watch are at 71,900 and 72,500, while support levels are at 70,900 and 70,082.”
Neha Qureshi, an analyst, has provided the following intraday trading strategy:
- Sell MCX August Gold futures at ₹71,500 with a stop loss of ₹71,900 and a target price of Rs 70,900.
- Sell MCX July Silver futures at ₹88,600 with a stop loss of ₹89,600 and a target price of Rs 86,600.
