As spot gold crosses $2,500 mark, should you buy or avoid yellow metal now? Analysts share short- to medium-term trading ideas
Commodity Market Trading Ideas: International gold prices remain above $2,500 per ounce and silver around $29, driven by hopes for deeper interest rate cuts. With global investors awaiting the FOMC minutes, Fed Chair Jerome Powell's Jackson Hole remarks, and the Fed's next meeting, analysts have lined up their short- to medium-term trading ideas for gold, silver, copper, and aluminum.
Commodity Market Trading Ideas: With international gold prices sustaining above the psychologically important $2,500 per ounce mark after scaling a fresh peak last week, and silver holding on to levels to the tune of $29 an ounce, amid hopes of quicker and deeper cuts in benchmark interest rates in the coming months, are there any trading opportunities in the world of commodities now? As investors globally await the minutes of the FOMC's last policy meeting and Fed Chair Jerome Powell's remarks at the upcoming Jackson Hole symposium this week, and the US central bank's six-weekly meeting due next month, analysts have shared their short- to medium-term trading ideas in commodities including gold, silver, copper, and aluminium.
Where is gold and silver now?
On MCX, gold and silver futures (October 4 and September 5 respectively) hovered in the ranges of Rs 71,181-71,720 and Rs 83,406-84,179 in the morning session on Monday, August 19.
In the international market, spot gold was last seen trading at $2,497 per ounce - within $13 of a record high scaled last week - and silver at almost $29 per ounce at the last count.
What is supporting gold and silver?
Gold and silver are supported by upbeat macroeconomic data from major economies like the US (inflation and retail sales), weakness in the US dollar, and escalating geopolitical tensions, say analysts.
Besides, the prospects of lower interest rates continue to boost the appeal of the precious metals.
How to trade gold
Gold has support at $2,522-2,500 and resistance at $2,572-2,600 per troy ounce in the international market, and Rs 71,040-70,700 and Rs 71,680-72,040 on MCX, respectively, according to Manoj Kumar Jain, director at Prithvi Finmart.
Jain suggests buying gold on dips at around Rs 71,100 for a target of Rs 72,000 with a stop loss at Rs 70,660.
How to trade silver
The white metal finds support at $28.64-28.35 and resistance at $29.40-29.84 per troy ounce, or Rs 82,550-81,700 and Rs 84,000-84,850, respectively, according to Jain.
How to trade silver
Jain suggests buying silver around the level of Rs 82,500 for a target of Rs 84,500 with a stop loss at Rs 81,650.
How to trade copper
Kedia Commodities MD Ajay Kedia suggests buying copper futures at Rs 805 for a one-month target of Rs 850.
He believes that a rate cut and improvement in demand can trigger a bounceback in the rates of the red metal.
How to trade aluminium
Kedia suggests buying aluminium around Rs 222 for a target of Rs 235 with a stop loss at Rs 210, citing an expected cut in the global production of the commodity during winter months.
How to trade natural gas
Kedia expects natural gas demand to increase in European countries during the winter season.
He suggests buying the commodity at Rs 170 for a target of Rs 220 with a stop loss at Rs 155.