Gold and Silver rate today (July 11, 2024): Yellow metal nears Rs 73,000, US June CPI in focus
As inflation reading is expected to come in softer in the US later today, gold prices may get a boost in the near-term.
Gold and Silver rate today (July 11, 2024): Domestic yellow metal futures on Thursday traded with gains, while the white metal futures traded significantly higher.
At the last count, MCX gold futures (Aug 5) were up 0.28 per cent or Rs 202 at 72,870 per 10 gm. Meanwhile, MCX Silver futures (Sept 5) traded 0.74 per cent or Rs 687 higher at Rs 93,519 per kg.
Spot gold traded up 0.1 per cent to $2,373.35 an ounce in early trade today, while the Bloomberg Dollar Spot Index remained flat. Silver edged up toward $31 an ounce. Gold held a two-day advance, with traders pricing higher odds of an initial interest-rate cut from the Federal Reserve in September after Chair Jerome Powell told Congress he believes inflation is receding.
The precious metal traded above $2,370 after a 0.3 per cent gain in the previous session as Jerome Powell wrapped up a second day of testimony in Washington, where he said the central bank doesn’t need inflation below 2% before cutting.
Meanwhile, Comex Gold traded higher by 0.30 per cent at $2,386.8 per ounce.
Gold has risen 15 per cent this year, aided by central-bank purchases, heightened geopolitical tensions, and investors’ expectations that there will soon be a shift to easier monetary policy. The US inflation due later on Thursday with a reading of the consumer price index expected to show a smaller 0.1% increase in June could bolster the case for a September cut.
Outlook for gold
Neha Qureshi- Manager Technical & Derivatives Research Analyst ( Commodities & Currencies Strategist) at Anand Rathi stated that despite the macro headwinds, gold remains supported by a second consecutive month of inflows into Gold exchange-traded funds (EFTs) in June, driven by additions to holdings by Europe and Asia-listed funds. However, after Fed Chair Powell's semi-annual testimony, investors eye the release of US June inflation figures along with the Initial Jobless Claims and the University of Michigan Consumer Sentiment data that will set gold’s direction for the next week.
Trading strategy for gold/silver
Qureshi has advised to buy the yellow metal (August futures) on dips at around Rs 72,800 for a target of Rs 73,400, maintaining a stop loss at Rs 71,300. Similarly, for silver, Qureshi to adopt a buy on dips approach at a price of Rs 93,400 for a target of Rs 95,400 and a stop loss at Rs 92,400.
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