Gold rates flat in early trade; what should be your strategy today?
Gold prices traded flat in early domestic futures trade on Wednesday tracking weak global cues and subdued demand from the local spot markets.
Gold prices were rangebound in international markets ahead of the release of the US Federal Reserve’s latest monetary policy meeting minutes later in the day. Dollar’s rise against its peers also weighed on yellow metal’s prices.
Gold and silver settled on a positive note in the international markets on Tuesday. Gold and silver extended their gains ahead of the US Fed June month policy meeting minutes. Gold and silver gained amid bargain buying at lower levels and slower global economic growth prospects supported safe-haven demand for precious metals. However, an uptick in the US dollar and bond yields is restricting gains for precious metals.
On MCX, Gold August Futures were 0.03 per cent up at ₹58,429 per 10 gram around 9:25 am.
What should be your strategy?
Experts expect gold prices to remain volatile reacting to macro events and the movement of dollar and bond yields.
Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week amid volatility in the dollar index and ahead of the Fed meeting minutes.
“Gold has support at $1,922-1,910, while resistance at $1,945-1,958 per troy ounce. Silver has support at $22.84-22.60, while resistance is at $23.45-23.70 per troy ounce. At MCX, gold is having support at ₹58,200-58,050 and resistance at ₹58,550-58,720 while silver is having support at ₹70,100-69,750 and resistance at ₹70,850-71,400. We suggest buying silver on dips around ₹70,100 with a stop loss of ₹69,650 for the target of ₹71,100,” said Jain.
Brokerage firm Motilal Oswal Financial Services is of the view that gold and silver will trade rangebound today. Motilal pointed out that gold has support at ₹58,200-58000 whereas resistance is at ₹58,600-58,800. On the other hand, silver has support at ₹70,000-69,400 whereas resistance is at ₹71,200-71,800.
Brokerage firm SMC Global Securities believes gold may trade in the range of ₹58,200-58,700 and silver, too, may trade in the range of ₹70,200-70,900 where buying near support is advised.
Disclaimer: The views and recommendations given in this article are those of individual analysts and brokerage firms. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 05 Jul 2023, 09:50 AM IST
