Gold and Silver rate today (July 9, 2024): Domestic yellow metal futures on Tuesday traded on a positive note, while white metal futures traded still higher. 

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At the last count, MCX gold futures (Aug 5) were up 0.27 per cent or Rs 196 at 72,529 per 10 gm. Meanwhile, MCX Silver futures (Sept 5) traded 0.85 per cent higher at Rs 93,397 per kg.

Neha Qureshi- Manager Technical & Derivatives Research Analyst ( Commodities & Currencies Strategist) at Anand Rathi said gold price traded on a steady note in early trade after profit booking moves seen amid the weaker US Dollar with the downside for the precious metal remaining limited as traders raised their bets that the US Federal Reserve (Fed) would cut interest rates in September following soft US employment data last week.

Additionally, the cautious mood amid the political uncertainties in France and geopolitical tensions in the Middle East might boost yellow metal's price, a traditional safe-haven asset. Earlier, gold prices were dragged lower by the People Bank of China’s (PBoC) decision not to buy gold for a second straight month in June.

Gold traders to monitor Fed Chair Jerome Powell's semi-annual Congressional testimony, along with the speeches from Fed’s Michael Barr and Michelle Bowman. In addition on Thursday, the US Consumer Price Index (CPI) inflation data will take center stage.

Meanwhile, Comex Gold traded higher by 0.36 per cent at $2,372 per ounce.

Besides, on the previous day gold prices recorded a sharp fall on the back of increased appetite for riskier assets and profit-taking as the yellow metal climbed on soaring expectations that the Fed could resort to an interest rate cut as early as September. 

Outlook for gold prices

Financial markets continue to price in a nearly 76% chance of a Fed rate cut in September, up from 71% last Friday, according to the CME Fed Watch tool. The US CPI inflation is expected to ease to 3.1% YoY in June from 3.3% in May, while core inflation is estimated to remain steady at 3.4% YoY in the same reported period which could guide precious metals way ahead.

Qureshi added that on the technical front, the yellow metal which witnessed a breakout above a descending trend channel formation maintains a positive bias for the medium term above the key 100-day Exponential Moving Average (EMA), with other momentum indicators holding in the bullish zone. This indicates that the key support level for gold is likely to hold in the short term rather than break on the lower side.

Trading strategy in gold and silver

For MCX Gold futures (August contract), Qureshi recommends a buy on dip in the metal at a price of around Rs 72,300 for a target of Rs 73,000 and maintaining a stop loss at Rs 71,900. Similarly for MCX Silver (futures),  the expert advises a buy on dips at around Rs 92,600 for a target of Rs 94,600 and placing the stop loss at Rs 91,600.

 

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