Gold Rate Today: Gold prices in India gain amid dollar weakness. Check price of yellow metal in Delhi, Ahmedabad & other Indian cities
Gold futures traded with a positive bias in Thursday’s early trade aided by weakness in the Dollar Index (DXY) which slipped below the 101 mark. Cooling US inflation numbers in the US weakened the greenback and lifted the yellow metal.
The DXY was trading at 100.47, losing nearly 3% over the past five trading sessions.
The August gold futures were trading at Rs 59,237 per 10 grams on the MCX around 9:15 am, up Rs 49 or 0.08%. September Silver futures were trading at Rs 73,876, up Rs 330 or 0.45%. Gold and silver futures ended in the green on Wednesday.
On the Comex, Gold futures were trading at $1,964 per troy ounce, up $2.80 or 0.14% while Silver futures trading at $24.440, up $0.130 or 0.53%.
The rally in gold has been on account of faster than expected fall in the US inflation, Praveen Singh – Associate Vice President, Fundamental Currencies and Commodities at Sharekhan said.
“Gold is expected to trade with a positive bias, though yield volatility may pose a risk. In addition, gold with respect to yields is overextended. Real interest rates are climbing up. Bulls set their eyes on $1980. Support is seen at $1,950/$1,937,” Singh said.
Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities expects DXY to further go down and test 99 to 97 levels adding that it would augur well for the yellow metal.”Gold futures on the MCX have gained 1.74% or Rs 1,011 per 10 gram on the month-to-date basis,” Gupta said. “They were up by 7.67% or Rs 4,214 on the year-to-date basis as on Wednesday, July 12 on the closing price basis, he added. Meanwhile, Silver futures have gained nearly by Rs 3,592 or 2% in value terms in July while gaining by 6.12% or Rs 4,242 on the YTD basis,” the IIFL analyst said.
Price of physical gold in bullion markets in Delhi-NCR is around Rs 61,000 per 10 gram while that of Silver is Rs 75,500 per kg, Gupta said.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX August Gold futures at Rs 58,800 with a stop loss of Rs 58,600 and price target of Rs 59,400
– Buy MCX September Silver futures at Rs 72,800 with a stop loss of Rs 72,000 and price target of Rs 74,200.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)