Gold and Silver rate today (July 19, 2024): Precious metals edge sharply lower; gold down 1% at Rs 73,495, silver down by nearly Rs 1,700/kg

Gold and Silver rate today (July 19, 2024):  Domestic precious metal futures on Friday edged sharply lower mirroring trend in the international markets. At the last count, MCX gold futures (Aug 5) were down 0.89 per cent or Rs 660 at Rs 73,495 per 10 gm. Meanwhile, MCX Silver futures (Sept 5) slumped by as much as 1.82 per cent or 1,667 at Rs 90,105 per kg.

"Gold prices dropped overnight, though remaining at around familiar levels of $2,450 per troy ounce, as speculation that the Federal Reserve would lower borrowing costs at the September meeting grew. It traded around $2,443 with losses of 0.20% in early trade as the Greenback stages a recovery, underpinned by elevated US Treasury yields," said Neha Qureshi, Senior Technical and derivative Research Analyst, Anand Rathi Commodities & Currencies.

US jobs data revealed by the US Bureau of Labor Statistics (BLS) showed that more people than expected are applying for unemployment benefits, indicating an economic slowdown.

Meanwhile, COMEX gold in the international market was down 1.47 per cent at $2,420.4 per ounce.

Outlook

Gold prices recorded an all-time high of $2,483, but buyers failed to cling to gains as investors booked profits. This, along with former US President Donald Trump’s rhetoric of imposing at least 60% tariffs on China’s products, spurred flows to the American dollar, noted Qureshi.

Given the end of week concerns prices could likely witness continued profit booking moves, she added. Meanwhile, markets could likely witness subdued trade in day trade while the longer term outlook for gold remains positively biased amid rate cuts in coming quarters have historically always been supportive for the yellow metal, opined the expert.

Trading strategy in gold and silver

Qureshi recommended a 'sell on rise' strategy for gold August futures  at around Rs 73,700, keeping the stop loss at Rs 74,200 for the target of Rs 73,000. For silver September futures also a sell on rise is advised at Rs 91,000, with a stop loss of Rs 92,000 and a target of Rs 89,000.

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