Gold prices extended their fall after the biggest single-day loss in almost two years. Additionally, the likelihood of the Federal Reserve maintaining higher interest rates for longer has also influenced gold prices. Indeed, unlike other investments, gold does not earn interest. Investors are now watching upcoming U.S. economic reports, including inflation data, which could indicate future monetary policy directions.
On Monday, gold and silver settled on a negative note with gold ending Rs 1,300 lower at Rs 71,522/10 grams while silver slipped to Rs 2,318 or 2.7 % at Rs 81,189 per kg.
In recent weeks, investors have adopted cautious positions, fearing an escalation of the conflict in the Middle East over the previous weekend.
In a further reversal of Friday’s “risk-off” mood, gold fell 2% in U.S. markets to $2,341.9 an ounce, its biggest daily percentage decline in more than a year , although it’s still not far from its April 12 record high of $2,431.29. .
Today, the US Dollar Index, DXY, was hovering near the 106.11 mark, up 0.03 or 0.03%. “On the daily chart, June gold futures formed a bearish engulfing candlestick pattern, unable to hold above 73,300, which constitutes strong resistance. area suggesting a potential slowdown. The Relative Strength Index (RSI) has entered overbought territory and is showing negative divergences, supporting the bearish outlook. The key resistance levels to watch are at 71,800 and 72,295, while support levels lie at 70,700 and 70,200,” says Neha Qureshi, senior technical and derivatives analyst at Anand Rathi Commodities & Currencies.
Intraday Strategy by Neha Quereshi:
– Sell MCX JUNE Gold futures at Rs 71100 with a stop loss of Rs 71500 and a price target of Rs 70700
– Sell MCX MAY Silver futures at Rs 80500 with a stop loss of Rs 81500 and a price target of Rs 78500
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Gold prices extended their fall after the biggest single-day loss in almost two years. Additionally, the likelihood of the Federal Reserve maintaining higher interest rates for longer has also influenced gold prices. Indeed, unlike other investments, gold does not earn interest. Investors are now watching upcoming U.S. economic reports, including inflation data, which could indicate future monetary policy directions.
On Monday, gold and silver settled on a negative note with gold ending Rs 1,300 lower at Rs 71,522/10 grams while silver slipped to Rs 2,318 or 2.7 % at Rs 81,189 per kg.
In recent weeks, investors have adopted cautious positions, fearing an escalation of the conflict in the Middle East over the previous weekend.
In a further reversal of Friday’s “risk-off” mood, gold fell 2% in U.S. markets to $2,341.9 an ounce, its biggest daily percentage decline in more than a year , although it’s still not far from its April 12 record high of $2,431.29. .
Today, the US Dollar Index, DXY, was hovering near the 106.11 mark, up 0.03 or 0.03%. “On the daily chart, June gold futures formed a bearish engulfing candlestick pattern, unable to hold above 73,300, which constitutes strong resistance. area suggesting a potential slowdown. The Relative Strength Index (RSI) has entered overbought territory and is showing negative divergences, supporting the bearish outlook. The key resistance levels to watch are at 71,800 and 72,295, while support levels lie at 70,700 and 70,200,” says Neha Qureshi, senior technical and derivatives analyst at Anand Rathi Commodities & Currencies.
Intraday Strategy by Neha Quereshi:
– Sell MCX JUNE Gold futures at Rs 71100 with a stop loss of Rs 71500 and a price target of Rs 70700
– Sell MCX MAY Silver futures at Rs 80500 with a stop loss of Rs 81500 and a price target of Rs 78500
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)