Gold Price Today: Yellow metal opens at Rs 71,657 per 10 grams, silver at Rs 88,856/kg

While trading range bound so far this week, MCX gold August contracts on Wednesday opened 0.11% or Rs 82 lower at Rs 71,657 per 10 grams while MCX silver July contracts were down 0.25% or Rs 224 at Rs 88,856/kg.

Gold prices steadied after a slight rise in the previous session and closed 0.4% higher. The price of the metal has stayed within a narrow range since Fed officials signaled one rate cut this year, down from three projected in March.

Central bank officials stressed needing more evidence of cooling inflation before cutting rates. Fed Governor Adriana Kugler suggested rate cuts might be appropriate later this year if conditions align.

Additionally, more central banks plan to add to their gold reserves within a year and more of them expect others to do so as well, due to macroeconomic and political uncertainty despite high prices for the precious metal, the World Gold Council (WGC) said in its annual survey.

US retail sales in May indicated financial strain among consumers, but industrial production rose due to increased factory output. Investors are also focused on weekly jobless claims due on Thursday and flash purchasing managers’ indexes on Friday, which could offer more clarity on consumption and economic strength.In the U.S. markets, spot gold held its ground at $2,327.76 per ounce, as of 0115 GMT. U.S. gold futures edged 0.2% lower to $2,342.00Today, the US Dollar Index, DXY, was hovering near the 105.26 mark, rising 0.01 or 0.01%.“On the daily timeframe, MCX Gold (August) is trading above its rising trend line and has formed a hammer candlestick pattern, indicating bullish sentiments. A break above 71,900 could further strengthen this bullish outlook. The price is currently above the 50 EMA, providing strong support and indicating continued strength. Key resistance levels to monitor are 71,900 and 72,500, while support levels are at 71,200 and 70,700,” says Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.

Intraday Trading Strategy by Neha Qureshi:

• Buy MCX AUGUST Gold futures at Rs 71,700 with a stop loss of Rs 71,300 and a price target of Rs 72,300
• Buy MCX JULY Silver futures at Rs 89,100 with a stop loss of Rs 88,100 and a price target of Rs 91,100

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