Gold and Silver Prices on MCX fall
Gold prices on MCX for June futures contracts fell by Rs 96 or 0.13% to trade at Rs 72,884 per 10 grams on Friday. Meanwhile, MCX July silver contracts fell by Rs 145 or 0.17% to Rs 87,155 per kg, tracking subdued global market cues.
Insight: It is crucial for traders to pay close attention to global market trends and cues to anticipate fluctuations in precious metal prices.
Factors influencing gold and silver prices
Traders reconsidered interest rates following Federal Reserve comments about the need for further inflation reduction. US Treasury yields rose after officials indicated borrowing costs would stay high.
Gold has risen 15% this year due to central bank buying, geopolitical risks, and Chinese demand. Silver, which has outperformed gold, is up 25% due to strong demand.
Insight: Geopolitical tensions, central bank policies, and economic indicators all play a role in influencing the prices of precious metals like gold and silver.
Current trends in the US markets
In the US markets, spot gold was up 0.1% at $2,379.14 per ounce, as of 0236 GMT. Bullion prices have gained 0.7% so far this week while U.S. gold futures were flat at $2,383.20.
Spot gold was stable at $2,378.01 an ounce in Singapore, with silver climbing, and platinum and palladium slightly lower. Today, the US Dollar Index, DXY, was hovering near the 104.62 mark, rising 0.15 or 0.15%.
Insight: The US markets often set the tone for global investment trends, making it essential for traders to keep an eye on developments in the US economy and financial markets.
Intraday Trading Strategy for Gold and Silver
“The daily trading chart for gold is showing a bullish engulfing candlestick pattern, along with forming higher highs and higher lows, indicating a positive trend in its price. This optimism is further supported by gold bouncing back from its 21-day exponential moving average (EMA), which is acting as a support level,” said Neha Quereshi of Anand Rathi Commodities.
Moreover, a positive divergence in the Relative Strength Index (RSI) indicates growing market momentum. It’s important to monitor potential resistance levels at 73,315 and 73,958. On the downside, support levels are positioned at 72,700 and 72,200, added Quereshi.
Insight: Technical analysis tools like candlestick patterns and moving averages can provide valuable insights into potential price movements for gold and silver.
Neha Quereshi’s Trading Recommendations:
– Buy MCX JUNE Gold futures at Rs 73000 with a stop loss of Rs 72600 and a price target of Rs 73500
– Buy MCX JULY Silver futures at Rs 87300 with a stop loss of Rs 86300 and a price target of Rs 89300
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Insight: Following expert recommendations and creating a sound trading strategy based on technical analysis can help traders navigate the volatile precious metals market effectively.
