Gold price today: On Wednesday, MCX gold and silver futures were trading with a negative bias. August gold futures were trading at 50,611 rupees per 10 grams on the MCX while July silver futures were trading at 60,511 rupees per kg at 09:20.
The former fell by Rs 150 or 0.3% while the latter fell by Rs 760 or 1.2% at that time.
“Gold prices came under mild pressure ahead of key testimony from Fed Chairman Jerome Powell this week. A strong dollar and rising bond yields also contributed to weaker gold prices,” said Pritam Patnaik, Head of Commodities, HNI and NRI Acquisitions at Axis Securities.
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The Fed has indicated it plans to raise interest rates up to 1.25% over the next two months, by 75 basis points in July and 50 basis points in September, Patnaik said.
“This makes things very difficult for gold bulls. That said, higher interest rates coupled with weak growth could easily push the global economy into recession, which in turn will support gold prices. gold and will help set a price floor for the metal. In such a time frame, bound trade is advised,” he added.
The Axis Securities expert first sees the 1828 support, which if broken will open lower to $1813 and $1805.
As for the intraday trading strategy, buying MCX August Gold futures is recommended at 50500 with a stop loss of Rs 50300 and a target of Rs 51200, says expert Anuj Gupta.
Gupta, who is Vice President (VP), Commodities and Currency Research at IIFL Securities, also recommended a Buy n July Silver futures contract at Rs 60,700 with a stop loss of Rs 60,000 while the target to price is Rs 61700.
Gold Price Outlook
Gold is expected to trade in a range over the short to medium term. While the strength of the US Dollar Index subdued its upward move, the weakness of the Indian Rupee (INR) against the greenback bolstered the price of imports. This stopped any significant decline in bullion prices in India.
INR has been trading at levels around 75-78 against the USD, Amit Sajeja said, adding that the yellow metal has seen a secular trend in India due to a stronger dollar and it is unlikely to experience a massive correction.
His advice to investors is to take trading and investing bets simultaneously instead of relying on one mode. While the medium to long-term view for gold remains positive, the current range-bound move should also be used for trading perspective. Profits could be accrued on meeting targets, he said, adding that this will ensure liquidity.
Sajeja said levels around 50600-50500 are good levels to make an entry with a favorable risk/reward ratio.
He also believes that the current turmoil in stock markets related to inflation and interest rates may also have a temporary negative impact on bullion, but this will not last long and so investors need not worry too much about bullion. gold outlook.
Meanwhile, IIFL Securities analyst Anuj Gupta recommended buying on any lows near the 50500 levels with the stop loss at 49800 levels for the target at 51500 to 51700 levels. Trading and closing above 51700 could lead the rally towards the 52300-52500 (USD 1930-USD 1950) levels.
As for silver futures, investors could be looking to buy silver around the 60000 levels with the stoploss of the 58200 levels for the target of the 62500-63000 levels ($22.20 to 22, $50)
Trading and closing above 63,000 could lead the rally towards the 65,000-67,000 levels.
Rupee depreciation and equity market weakness are supporting yellow metals, the analyst said.
(Disclaimer: Opinions/suggestions/advice expressed here in this article are investment experts only. Zee Business suggests its readers consult their investment advisors before making any financial decisions.)