After a market holiday on Wednesday, gold prices on MCX for June futures contracts fell by Rs 36 or 0.05% to open at Rs 72,487 per 10 grams on Thursday while MCX May silver contracts were up by Rs 2 to open at Rs 83,501 per kg.
On Tuesday, the Gold June futures contract settled at Rs 72,523 per 10 grams and the Silver May futures contract settled at Rs 83,499 per kilogram.
Despite the delay in potential rate cuts, gold has been performing well, supported by increasing geopolitical tensions and demand from central banks and consumers in China.
In the U.S. spot gold was up 0.4% at $2,369.93 per ounce, as of 0107 GMT. U.S. gold futures dipped 0.1% to $2,385.10 per ounce. Predictions from major banks like Citigroup and Goldman Sachs suggest that gold prices could continue to rise significantly in the coming years.
Today, the US Dollar Index, DXY, was hovering near the 105.87 mark, rising 0.08 or 0.07%.
Neha Qureshi, Senior technical & derivative analyst at Anand Rathi Commodities & Currencies said, “Gold prices increased slightly after nearly a 1% drop on Wednesday, influenced by signals from the Federal Reserve that interest rate cuts might be postponed longer than initially expected. This change in expectation came after Fed Chair Jerome Powell mentioned a likely delay due to higher-than-expected inflation rates.
On the daily chart, adds Quereshi, the June gold futures have formed a bearish engulfing candlestick pattern, suggesting a potential downturn. The Relative Strength Index (RSI) has entered the overbought territory and is displaying negative divergences, which supports the bearish outlook. The key resistance levels to watch are at 73,300 and 73,958, while the support levels are situated at 72,020 and 71,700.
Intraday Trading Strategy by Neha Quereshi
– Sell MCX JUNE Gold futures at Rs 72500 with a stop loss of Rs 73000 and a price target of Rs 72000
– Sell MCX MAY Silver futures at Rs 83400 with a stop loss of Rs 84400 and a price target of Rs 81400
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
