Gold and Silver Futures on MCX Remain Steady
Gold August futures and silver September futures on MCX opened flat today after experiencing sharp declines yesterday following a cut in the custom duty announced in the Union budget. The former opened 0.38% or Rs 262 higher at Rs 68,772 per 10 gram while the latter was up by 0.38% or Rs 321 at Rs 85,240/kg.
The recent dip in gold and silver prices, triggered by a 9% duty cut in the budget, led to heavy sell-off in domestic markets. Gold prices dropped by Rs 4,300 per 10 gram, hitting 4-month lows while silver prices fell by Rs 4,200/kg, nearing its 3-month lows in domestic markets.
Impact of Import Duty Cuts on Gold and Silver Prices
The decision by Finance Minister Nirmala Sitharaman to reduce import duty on gold and silver from 15.0% to 6.0% has caused significant turmoil in the domestic markets. This drastic cut of 9.0% in import duty has led to a negative impact on gold and silver prices, pushing them lower in the domestic markets.
Insight: The Role of Global Factors in Gold and Silver Prices
While the domestic markets have been affected by the duty cuts, it’s important to note that gold and silver prices have remained positive in the international market post the budget announcement. Global factors, such as the US Dollar Index, DXY, hovering near the 104.49 mark, have also influenced the movement of gold and silver prices. Keeping an eye on international trends can provide a broader perspective on the fluctuations in the precious metals market.
Technical Analysis and Intraday Trading Strategy
Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies, highlighted the bearish sentiments in MCX Gold August futures. According to her analysis, the market is currently trading below its 100-day EMA, indicating weakness, with resistance levels at around 69,200 and 70,000 and support levels at 68,000 and 67,200.
Intraday Trading Strategy by Neha Qureshi:
– Sell MCX August gold futures at Rs 68,500 with a stop loss of Rs 69,200 and a price target of Rs 67,500
– Sell MCX September silver futures at Rs 85,000 with a stop loss of Rs 86,000 and a price target of Rs 83,000
It’s important for traders to consider both technical analysis and global factors when making trading decisions in the volatile precious metals market. By staying informed about market trends and developments, traders can navigate the ups and downs of gold and silver prices more effectively.
