Gold Price Today: From intraday trading strategy in MCX Gold, Silver futures to outlook, here is all you need to know

Gold Price Today: MCX Gold and Silver Futures were trading with a negative bias on Wednesday. The August Gold futures were trading at Rs 50611 per 10 gram on the MCX while the July Silver futures were trading at Rs 60511 per kg at 9:20 am.

The former was down by Rs 150 or 0.3 per cent while the latter declined by Rs 760 or 1.2 per cent around this time.  

“Gold prices have come under mild pressure ahead of Fed Chair Jerome Powell’s key Testimony this week. A strong dollar and rising bond yields have also contributed to the softening of gold prices,” Pritam Patnaik, Head of Commodities, HNI and NRI Acquisitions at Axis Securities said.

See Zee Business Live TV Streaming Below:

The Fed has indicated that they are looking at raising interest rates by as much as 1.25 per cent in the next couple of months, 75 basis points in July and 50 basis points in September, Patnaik said.

“This makes things very difficult for Gold bulls. That said, the higher interest rates coupled with low growth could easily push the global economy into recession, which in turn will be supportive for gold prices and help establish a floor price for the metal. In such time range bound trading is advisable,” he further said.

The Axis Securities expert sees first support 1828, which, if breached, will an open a downside till USD 1813 and USD 1805.

As for intraday trading strategy, buying in MCX August Gold futures is recommended at 50500 with a stop loss of Rs 50300 and target of Rs 51200, says expert Anuj Gupta.

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities also recommended a Buy n July Silver futures at Rs 60700 with a stop loss of Rs 60000 while the price target of Rs 61700.

Gold Price Outlook

Gold is expected to trade in a range-bound manner over near to medium term. While, the strength in US Dollar index has kept its upward movement in check, the weakness in Indian Rupee (INR) against the greenback, has lent strength making imports expensive. This has arrested any significant decline in prices of bullion in India.

The INR has traded from levels around 75 to 78 against the USD, Amit Sajeja said adding that the yellow metal has seen a secular trend in India because of a stronger dollar and it is unlikely to see massive correction.

His advice to investors is to take trading and investment bets simultaneously instead of relying on any one mode. While the medium to long term view in Gold remains positive, the current range-bound movement should also be utilised for trading perspective. Profits could be booked on achieving the targets, he said adding that this will ensure liquidity.

Sajeja said that levels around 50600-50500 are right levels for making an entry with favourable risk-to-reward ratio.

He also opines that the current upheavals in equity markets on inflation and interest rate worries may have a temporary adverse impact on bullion as well, but it will not be long lasting and hence investors must not worry too much about the prospects of Gold.  

Meanwhile, IIFL Securities analyst Anuj Gupta recommended buying on any dip near 50500 levels with the stop loss of 49800 levels for the target of 51500 to 51700 levels. Trading and closing above 51700 may lead the rally towards 52300 to 52500 levels (USD 1930- USD 1950).

As for Silver futures, investors could look to uy in silver around 60000 levels with the stoploss of 58200 levels for the target of 62500-63000 levels ($22.20 to $22.50)

Trading and closing above 63000 may lead the rally towards 65000 to 67000 levels.

Depreciation in rupee and weakness in equity market supports the yellow metals, said this analyst.

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)