As the bullion market continues to experience volatility, the August futures of gold opened 0.55% higher at Rs 72,914 per 10 grams, while silver July futures saw a 1.22% increase at Rs 91,550/kg. Despite the ups and downs, both gold and silver have shown signs of recovery in the past few days.
Gold and silver prices rebounded following interest rate cuts by the Bank of Canada, providing some stability in the market. However, uncertainties still persist, leading to fluctuating trends in the precious metals sector.
Positive Settlements for Gold and Silver
On Wednesday, gold and silver futures contracts closed on a positive note in the domestic markets. The gold August futures contract settled at Rs 72,518 per 10 grams with a gain of 0.72%, while the silver July futures contract closed at Rs 90,444 per kilogram, marking an 0.88% increase. These positive settlements reflect the ongoing volatility in the bullion market.
The Impact of Interest Rate Cuts
The recent interest rate cuts by the Bank of Canada have played a significant role in driving the recovery of gold and silver prices. With a 25 basis points reduction, the BOC has created a more favorable environment for precious metals, potentially boosting their prices further.
Market Analysis and Projections
According to Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies, the gold market has been trading within a narrow range due to uncertainties surrounding the Fed’s rate path. While markets are cautiously optimistic about potential rate cuts, the outlook remains uncertain. Qureshi highlights the importance of monitoring key resistance and support levels to gauge market sentiment.
Insight into Market Sentiments and Intraday Strategies
Currently, the US Dollar Index (DXY) is showing signs of weakness, hovering near the 104.09 mark. In this context, MCX Gold (August) is trading above its rising trend line and displaying a bullish candlestick pattern, signaling positive sentiments in the market. With key resistance levels at 72,800 and 73,300, traders should monitor support levels at 72,100 and 71,700 for potential market movements.
Intraday Strategy Recommendations by Neha Qureshi:
– Consider buying MCX August Gold futures at Rs 72,600 with a stop loss at Rs 72,200 and a price target of Rs 73,200
– For those interested in silver, buying MCX July Silver futures at Rs 90,500 with a stop loss at Rs 89,500 and a price target of Rs 92,500 could be a strategic move
(Disclaimer: Recommendations, suggestions, views, and opinions provided by experts reflect their own perspectives and do not necessarily align with those of Economic Times)
By providing additional context on the impact of interest rate cuts and analyzing market sentiments, the revised article enhances the reader’s understanding of the factors influencing gold and silver prices. Additionally, the inclusion of intraday strategy recommendations offers practical insights for traders looking to capitalize on current market conditions.
