Gold and Silver rate today (June 28, 2024): MCX Gold trades muted; silver gains to Rs 87,500 per kg ahead of US inflation data

Gold and Silver rate today (June 28, 2024): Domestic precious metal futures on Friday (June 28) tracking weakness in international markets traded lower ahead of the key US inflation data due later today.

At the last count, MCX gold futures (Aug 5) were trading on a muted note at Rs 71,574 per 10 gm up by a marginal Rs 2. Meanwhile, MCX Silver futures (Jul 5) traded higher by 0.5 per cent or Rs 452 at Rs 87,500 per kg. 

Internationally, gold is on course of its third consecutive quarterly gains as investors await for cues on Federal Reserve's take on interest rate going forward. During the quarter, precious yellow metal's price has surged 4 per cent.

Meanwhile on the Comex, gold traded flat at $2,336.5 per ounce.

Mr. Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One held that on the previous gold rebounded from a two-week low, as a weaker dollar and anticipation of U.S. inflation data shifted market focus.
Economic slowdown signs emerged, with declining business equipment spending and a rising trade deficit, while Q1 GDP growth was confirmed to have sharply moderated.

The dollar's decline against major currencies and falling 10-year yields made gold more attractive to non-U.S. investors.

Despite the Fed projecting only one rate cut, investors expect two cuts this year, which lowers the opportunity cost of holding non-yielding gold. The upcoming Personal Consumption Expenditures Price Index report is also keenly awaited, Mallya added.

Additionally, market attention was on potential Japanese intervention in the yen as it neared a 38-year low, further boosting gold's appeal amid economic uncertainty.

Outlook

Neha Qureshi, Senior Technical and derivative Research Analyst, Anand Rathi Commodities & Currencies remarked that steady global equity market trend with underlying bullish tone suggests that the path of least resistance for the safe-haven gold price remains on the downside. Meanwhile, the markets are still pricing in the possibility of two rate cuts by the Fed this year in the wake of signs that inflation in the US is subsiding. This, along with persistent geopolitical tensions and political uncertainty, lends some support to gold. Also, aggressive bears prefer to wait for the release of the crucial US Personal Consumption Expenditures (PCE) Price Index on Friday. In the meantime, Thursday's US economic docket during might produce short-term opportunities later in the session. 

Trading strategy in MCX gold/silver 

Qureshi suggests selling August futures on rise at around Rs 71,600 with a stop loss of Rs 71,900 for a target of Rs 70,900. While, for Silver July contract also the expert has suggested a sell on rise strategy at a price of around Rs 87,000 for a target of Rs 85,000 and maintaining a stop loss of Rs 88,000.