Gold Price Today 7 September: yellow metal weakens amid strengthening dollar; expert gives intraday trading strategy for Gold, Silver futures
Gold Price Today 7 September: October Gold futures were trading flat on the MCX around 5 pm on Monday, albeit with some negative bias. They were trading at Rs 50279 per 10 gram and were lower by Rs 2 from the Tuesday closing price
Gold Price Today 7 September: October Gold futures were trading flat on the MCX around 5 pm on Monday, albeit with some negative bias. They were trading at Rs 50279 per 10 gram and were lower by Rs 2 from the Tuesday closing price. Meanwhile, December Silver futures were down by Rs 380 or 0.72 per cent and trading at Rs 53526 around this time.
Weakness in bullion can be attributed to the surging Dollar Index (DXY) and higher 10-year bond yields in the US.
“A surging dollar index and bond yields on the back of a greater probability of Fed hiking rates by 75 basis points has seriously dented the gold prices,” Pritam Patnaik, Commodities Head, HNI & NRI Acquisitions at Axis Securities said.
“Encouraged by positive data flows emerging from the US economy, the Fed could easily execute its plans to reign in inflation. With the probability of a 75 basis point hike increasing to 72 per cent, it’s not surprising to see the impact on gold,” he further said.
The Dollar Index jumped 0.4 per cent to 110.25 on Tuesday, an over 20-year high level, while the 10-year US treasury yields were also trading at their highest level in the last two months, he further said.
The bullion pack will be under pressure till the US Federal Reserve monetary policy scheduled on September 20-21, the Axis Securities expert said.
Another expert Anuj Gupta expects weakness to continue over the remaining trading session. He recommends a Sell on MCX October Gold Futures at Rs 50400 with a stop loss of Rs 50650 and price target of Rs 49800.
As for MCX December Silver futures, buying is recommended at Rs 52500 with a stop loss of Rs 51800 and price target of Rs 53600.
Gupta is Vice President (VP), Commodity and Currency Research at IIFL Securities.
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