Gold Rate Today: Gold prices in India slip on dollar strength. Check price of yellow metal in Delhi, Ahmedabad and other cities
Gold prices on MCX slipped on Monday as the dollar index strengthened and went above the 104 mark. The uptick in the greenback was on account of strong US payroll data that the Street fears has put the rate pause at the backburner.
At 12:30 pm, August gold futures were trading at Rs 59,434 per 10 grams on the MCX, down Rs 174 or 0.29% while July Silver futures were at Rs 71,620 per kg, lower by Rs 400 or 0.56%.
On the Comex, gold futures were trading $10.40 or 0.53% lower at $1,959.20 per troy ounce while silver futures were lost $0.212 or 0.89% to $23.535 per troy ounce.
Gold is expected to trade lower towards Rs 59,340 levels, a break of which could prompt the price to move lower to Rs 59,220 levels, said Prathamesh Mallya, Deputy Vice President, Research, Non-Agro Commodities & Currency at Angel One.
Gold is on track for its first monthly drop in three months, as the US dollar climbed on expectations that the Federal Reserve will keep interest rates higher for a longer period of time than previously thought, Mallya said.
Gold prices rallied and managed to conclude the previous week with minor gains of 0.2%, the Angel One analyst said.
The current selloff in yellow metal came after a better-than-expected May jobs data acted as a spoiler, Praveen Singh – Associate Vice President, Fundamental Currencies and Commodities at Sharekhan said. US employers added 339,000 jobs as against the forecast of 195,000 while the two-month payroll net revision added 93,000 jobs, he said.”Robust headline figures led to higher bond yields from 3.88% to 4.511% and the dollar index weighed heavily on gold,” Singh said.
The yellow metal is expected to test support at $1,930 in case of decent ISM non-manufacturing data while the resistance is seen at $1,965 – $1,990, Sharekhan analyst said.
Gold futures on the MCX have declined by 1.35% or Rs 812 per 10 grams in June, Vice President (VP), Commodity and Currency Research at IIFL Securities Anuj Gupta said. They were up by 8.12% or Rs 4,464 on a year-to-date basis as of Friday, he said. Meanwhile, silver futures have lost nearly Rs 320 or 0.41% in value terms in June while they have risen 3.47% or Rs 2,410 on a YTD basis, Gupta added.
Gupta said that the price of physical gold in Delhi and Ahmedabad is around Rs 61,000 per 10 grams while that of silver is Rs 73,000 per kg, Gupta of IIFL Securities said.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX August Gold futures at Rs 59,400 with a stop loss of Rs 59,050 and price target of Rs 59,900
– Buy MCX July Silver futures at Rs 71,500 with a stop loss of Rs 70,900 and price target of Rs 72,500.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)