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Gold Price Today: Yellow metal dips Rs 660/10 gm in 3 days, silver tumbles Rs 2,600/kg

Gold October futures contracts at MCX opened flat on Tuesday at Rs 71,526 per 10 gram, which is down by 0.1% or Rs 75 while silver December futures contracts were trading at Rs 84,426/kg, down by 0.15% or Rs 128.

Gold prices have fallen by Rs 660/10 gm in the last 3 days while silver has dipped by Rs 2,600 per kilogram.

On Monday, gold and silver settled on a weaker note in the domestic and the international markets. Gold October futures contract settled at Rs 71,601 per 10 grams with a loss of 0.01% and silver December futures contract settled at Rs 84,554 per kilogram with a loss of 0.77%.

Gold and silver extended its fall in a thin volume session. The U.S. markets were closed on Monday. Gold and silver investor’s look cautious ahead of the key U.S. job report as this will decide the fate of the U.S. Fed rate cut in the September policy meetings.

The dollar index and the U.S. 10-year bond yields were also traded steady and the U.S. job data limited gains of precious metals. According to the Fed watch tool 69% chances are for 25 basis points rate cut and 31% is expecting 50 basis points rate cut in September policy meetings. Ceasefire talks between Israel and Hamas also eases the risk premium of precious metals in the international markets.Today, the US Dollar Index, DXY, was hovering near the 101.74 mark, gaining 0.09 or 0.08%.“Gold has been declining and is now trading near $2,500 an ounce. The market is focused on the upcoming US employment data, which could impact the Federal Reserve’s decision on rate cuts. A weaker labor market might lead to more aggressive rate cuts, which is generally positive for gold,” said Neha Qureshi Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.Despite recent declines, gold is still up over 20% this year, supported by factors like central bank buying, strong demand, and global conflicts.

“On the daily chart, MCX Gold October futures are showing bullish momentum, trading above a rising trend line and consistently forming higher highs and higher lows. This pattern underscores the prevailing bullish sentiment. The price is currently positioned above both the 21-day and 50-day EMAs, further confirming the upward trend. Additionally, the RSI is displaying positive divergence, which reinforces the bullish outlook. Key resistance levels are located around 71,950 and 72,400, while crucial support levels are identified at 71,200 and 70,800,” Qureshi added.

Intraday Trading Strategy by Neha Qureshi:

  • Buy MCX October gold futures at Rs 71,600 with a stop loss of Rs 71,200 and a price target of Rs 72,100.
  • Sell MCX December silver futures at Rs 84,500 with a stop loss of Rs 85,500 and a price target of Rs 82,500.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)