Gold and Silver Futures Surge in July
Gold August futures have seen a significant rise of almost Rs 1,200 in July, opening at Rs 72,820 per 10 grams today. On the other hand, silver September futures have also experienced a surge of Rs 3,900 during the same period, with prices opening at Rs 93,476 per kilogram.
Mixed Results Ahead of US Inflation Data
Gold and silver closed with mixed results as investors awaited US inflation data. Expectations of a rate cut have been supporting prices, leading to a mixed ending for both metals in the international and domestic markets. The Gold August futures contract settled at Rs 72,668 per 10 grams, showing a gain of 0.37%, while the Silver September futures contract settled at Rs 92,832 per kilogram, indicating a slight loss of 0.15%.
Fed Chairman’s Testimony Impacts Dollar Index
During his two-day testimony before the US Senate committee and the House, Fed Chairman Jerome Powell hinted at a relaxation in monetary policy once inflation moves closer to the target rate of 2.0%. The US economy seems to have achieved a soft landing, meeting inflation targets without a significant rise in unemployment. Powell’s comments led to profit-taking in the dollar index, thereby supporting gold and silver prices. The market is anticipating rate cuts by the Fed starting in September, and today’s CPI inflation data could offer more insights into the timing of these cuts.
Anticipated Volatility Ahead of US Data
The US Dollar Index, DXY, was near the 104.95 mark today, down 0.10%. Analyst Manoj Kumar Jain of Prithivifinmart Commodity Research expects gold and silver prices to remain volatile this week as investors await the US CPI and PPI data.
Intraday Analysis by Manoj Kumar Jain
According to Jain’s analysis:
– Gold has support at 72,500-72,330 and resistance at 72,850-73,040.
– Silver has support at 92,200-91,650 and resistance at 93,600-94,200.
Jain recommends buying silver on dips around 92,400 with a stop loss of 91,750 for a target of 93,500.
Additional Insight:
Keeping an eye on data releases and central bank announcements is crucial for traders in the precious metals market. Market sentiment can shift based on economic indicators and policy signals, leading to fluctuations in gold and silver prices. Traders should carefully assess the impact of macroeconomic factors on these metals to make informed investment decisions.
