Gold Price Today: Yellow metal opens flat at Rs 72,100 while silver down by Rs 1,080
Ahead of the US personal consumption expenditure data, gold August futures on MCX opened flat at Rs 72,100, down by 0.16% or Rs 116 while silver July contracts opened lower by Rs 1,077 or 1.14% at Rs 93,046.
Gold and silver showed mixed trends in the international markets after the U.S. GDP data came as per market expectations. The second estimate of first-quarter GDP came up at 1.3% year on year against an expected reading of 1.2%.
Gold prices recovered from their lows but sell-off in the industrial metals pushed silver prices lower.
Today, the US Dollar Index, DXY, was hovering near the 104.85 mark, rising 0.13 or 0.13%.
“We expect gold and silver prices to remain volatile in today’s session ahead of the U.S. personal consumption expenditure data and European inflation data but gold and silver could hold its support levels of $2310 and $30.40 per troy ounce respectively on a weekly closing basis,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.Domestic markets settled on a weaker note on Thursday. Gold August futures contract ended at Rs72,216 per 10 grams with a loss of 0.08% and silver July futures contract settled at Rs 94,123 per kilogram with a loss of 2.12%. Gold traded in a narrow range this week due to a lack of new insights on inflation trends.Gold has risen 14% this year and reached an all-time high last week, driven by optimism for a Fed shift to monetary easing in 2024. It has also been supported by safe-haven purchases due to conflicts in Ukraine and the Middle East, as well as buying from central banks and Chinese consumers.“MCX Gold (August) is presently trading above its rising trend line, hovering near the trend line support. The inability to maintain levels above the 21-day EMA indicates an underlying weakness. A breakdown below 71,700 could signal a potential for further downside movement. Additionally, the RSI is exhibiting negative divergence, which suggests further weakness. Key resistance levels to watch are at 72,400 and 73,050, while support levels are at 71,700 and 71,200,” said Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.
Intraday trading strategy by Neha Qureshi:
– Sell MCX August gold futures at Rs 72,200 with a stop loss of Rs 72,500 and a price target of Rs 71,700
– Sell MCX July silver futures at Rs 94,000 with a stop loss of Rs 95,000 and a price target of Rs 92,000
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)