Gold prices surge above Rs 99k ahead of FOMC July meeting outcome. Analysts suggest how to trade
Ahead of the FOMC July meeting outcome, Gold October futures contracts at MCX were trading higher by Rs 358 or 0.36% at Rs 99,477/10 grams after settling positively in the previous trading session. However, in the last one week, the prices of yellow metal have fallen by Rs 1,861, from their all-time high levels.
Meanwhile, silver July futures contracts were trading flat with a negative bias, slightly lower by Rs 52 or 0.05% at Rs 1,13,701/kg.
On Tuesday, gold and silver settled on a positive note in the domestic and international markets. Gold October futures contract settled at Rs 99,119 per 10 grams with a gain of 0.69% and the silver September futures contract settled at Rs 1,13,753 per kilogram with a gain of 0.62%.
Gold and silver prices recovered from their lows after the U.S. JOLTS opening data released on Tuesday of June came lower than expected. As per the U.S. labour market’s job openings and labour turnover survey reports for June month job openings fell to 7.44 million against May months reading of 7.77 million and also below analyst expectations of 7.51 million jobs.
“Gold and silver prices also gained ahead of the Fed monetary policy meetings as markets are expecting that the Fed Chairman could give a hint for monetary easing in these policy meetings. Weakness in the rupee and surge in crude oil prices also supported prices of precious metals,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
However, the dollar index hit a 5-week high amid U.S. tariff uncertainty and limiting gains of gold and silver. Today, the US Dollar Index, DXY, was hovering near the 98.73 mark, falling 0.15 or 0.16%.“We expect gold and silver prices to remain volatile this week amid volatility in the global financial markets, the Fed monetary policy meeting and the U.S. trade tariff deadline but gold prices could hold its support level of $3,280 per troy ounce and silver prices could also hold $36.40 per troy ounce levels on a weekly closing basis,” he added.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 98,800-98,440 and resistance at Rs 99,500-99,820
- Silver has support at Rs 1,13,000-1,12,200 and resistance at Rs 1,14,400-1,15,115
Jain suggests buying silver on dips around Rs 1,13,100 with a stop loss of Rs 1,12,400 for a target of Rs 1,15,000.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,808/8 grams while pure gold (24 carat) prices stand at Rs 61,656/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,880/8 grams while pure gold (24 carat) prices stand at Rs 61,752/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,688/8 grams while pure gold (24 carat) prices stand at Rs 60,400/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,840/8 grams while pure gold (24 carat) prices stand at Rs 60,552/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)