Gold Price Today: Intraday trading strategy, outlook, weekly report card – all you need to know

Gold Price Today: Gold was trading positively on Monday aided by weaker US Dollar.  All eyes are now on a two-day US Federal Reserve policy meet which begins on Tuesday. The US Fed is expected to raise interest rates by 75 bps. The 50-bps interest rate hike by the European Central Bank (ECB), last week infused the much needed strength to the yellow metal prices, taking some weight off the USD and also lowering US Bond yields.

The strength has continued on Monday after the markets reopened, expert Anuj Guta said. He sees a positive movement on the intraday basis and recommends a buy in Gold and Silver futures.

MCX Gold ended the week higher by 1.07 per cent at Rs 50644 levels after hitting lows of 49703 levels during the week, Gupta said.

The MCX August Gold futures were trading flat, albeit with a positive bias on Monday around 4 pm. They were trading at Rs 50680 per 10 gram and were up by Rs 68 or 0.13 per cent from the Friday closing price.

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities recommends a buy on August Gold Futures at Rs 50500 with a spot loss of Rs 50200 and price target of Rs 50900-51000.

Meanwhile, the September Silver futures were trading at Rs 55070 and were down by Rs 61 or 0.11 per cent from the Friday closing price. The weakness can be attributed to the lower demand for industrial silver and overall metal segment, Gupta said.

Gupta suggests a Buy strategy on September Silver futures at 54700 with a stop loss of Rs 54000 and a price target of Rs 56000-56300.  

Levels to watch out for

Support in Gold futures is seen at Rs 50200 (USD 1680) -  Rs 49700 (USD 1650) while resistance is seen at Rs 51000 (USD 1740) - Rs 51500 (USD 1770) levels, Gupta said.
As for September Silver futures, support is seen at Rs 54000 - 52800 levels while resistance at Rs 57000 - 58500 levels.

MCX Gold, Silver Weekly Report Card

1) Gold prices recovered last week from lower levels and closed on a positive note.

2) Spot Gold closed higher by 1.15 per cent at USD 1726 levels. It made a low of USD 1680.20 levels.

3) MCX Silver prices corrected by 0.82 per cent and closed at Rs 55131.

4) In the international market, spot silver prices corrected by 0.68 per cent and closed at USD 18.56 in the last week.

Outlook

Gold may test USD 1740 while Silver may test USD 19.20 levels very soon, Gupta further said.

The market is waiting to see if the Fed stops at a 75 basis point hike or increases it to a full 1 per cent, Pritam Patnaik, Commodities Head, HNI and NRI Acquisitions at Axis Securities said. The prices look unlikely to test the lows witnessed last week, as renewed buying is expected from bargain investors, he added.

(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.)