DXY is up 2.34% over the past month.
On Friday, there was some relief for bullion as MCX Gold futures gained, helped by some easing in the Dollar Index (DXY). June yellow futures were trading at Rs 59,568 for 10 grams at 12 p.m., up Rs 108 or 0.18%. Meanwhile, July silver futures were trading at 70,717 rupees per kg, up 475 rupees or 0.68%.
On Comex, gold was trading at $1,948.10 per troy ounce and was up $4.40 or 0.23% while silver futures were trading at $23.04, up $0.130 or 0.570%.
Gold prices continued to fall and settled with a decline of almost 1% to $1940.3 an ounce on Thursday, which was also its lowest level in two months, Prathamesh Mallya, assistant vice president , Research – Non-Farm Commodities and Currencies at Angel One said. The US dollar hit 2-month highs, capping gold’s rise, Mallya said.
While a deal is likely to be reached between Republicans and Democrats on the US debt ceiling, a sharp revision to labor market GDP growth has weighed on gold’s outlook, the report said. Angel One analyst.
Risk appetite remains strong on a rally in IT stocks, which is again a bearish factor for the yellow metal, Praveen Singh, associate vice president, Fundamental Currencies and Commodities at Sharekhan. Fed pivot in sight and value of the Dollar Index, the metal is somewhat overvalued at the current level,” he said.
Saumil Gandhi, senior analyst (commodities) at HDFC Securities, said gold prices were consolidating in a lower range. MCX Gold June futures have support at Rs 59,250 – 59,080 for 10 grams and resistance at Rs 59,700 – 60,065 for 10 grams. He added that Comex spot gold had support at $1933-$1924 per ounce and resistance at $1980-$1995 per ounce for the day.
MCX Gold futures have gained 8.18% or Rs 4,498 on basis since the start of the year, while they are negative by 0.79% or Rs 475 on basis since the start of the month, Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities said. As for silver futures, year-to-date gains stood at 1.23% or Rs 850 at Thursday’s closing price, while the precious metal lost almost 5 .31% or Rs 3,935 in May.
The price of gold today in Delhi is around Rs 61,000 for 10 grams.
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Intraday Trading Strategy by Anuj Gupta
– Sell MCX June Gold futures at Rs 59,700 with a stop loss of Rs 60,050 and a price target of Rs 59,300
– Sell MCX July Silver futures at Rs 71,000 with a stop loss of Rs 71,750 and a price target of Rs 69,500.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)