The stable U.S. dollar also made bullion less affordable to foreign buyers, as investors waited for further clues on when the U.S. Federal Reserve would make its first interest rate cut.
June gold futures settled at Rs 71,500 per 10 grams with a gain of 0.40% and July silver futures settled at Rs 82,496 per kilogram with a gain of 0.10% last week. In international markets, gold and silver prices plunged in early trading after a surge in US inflation and disappointing GDP data released last week.
In US markets, spot gold fell 0.3% to $2,328.20 an ounce by 0112 GMT. U.S. gold futures fell 0.3% to $2,339.70 an ounce.
The U.S. personal consumption expenditures (PCE) price index rose 0.3% last month, in line with forecasts, a development that is unlikely to change expectations that the Fed will delay a rate cut of interest until September, while Fed policymakers review the latest inflation data. the data won’t find much to fuel the sense of urgency for a rate cut, but there’s also nothing to rule out the likelihood that rate cuts begin later this year.
Today, the US Dollar Index, DXY, was hovering near the 106 mark, up 0.05 or 0.04%.
“We expect gold and silver prices to remain volatile this week amid dollar volatility, geopolitical tensions and the approach of key US Fed monetary policy meetings, but gold and silver could hold their support levels of $2,284 and $26.40 per troy ounce respectively. Gold has support between $2,334 and $2,322, while resistance. is between $2,364 and $2,380 per troy ounce and silver has support between $27.24 and $27.00, while resistance is between $27.80 and $28.10 per troy ounce during today’s session,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Intraday Trading Strategy by Manoj Kumar Jain:
- Gold has support at 71220-70950 and resistance at 71740-72100.
- Silver has support at 81850-81400 and resistance at 83100-83650.
We suggest buying silver on dips around 81,900 with a stop loss at 81,400 for the target of 83,100.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
