Gold Price Today: Bullion trades cautiously ahead of US CPI data; expert suggest intraday trading strategy

Gold Price Today: Ahead of the US retail inflation data, the bullion traders appeared to tread cautiously on Wednesday. The Consumer Price Index (CPI) data will be a precursor to stance that will be taken by the US Federal Reserve in its next policy meeting in September.

“The gold traders remain a little cautious as they are eagerly awaiting the US CPI data which is due later in the day today, as this data is expected to be the guiding factor for the Feds next policy initiatives, to tackle inflation,” Pritam Patnaik, Commodities Head, HNI and NRI Acquisitions at Axis Securities said.

The markets exceptions remain split as far as the US inflation data expectations goes, he said adding that while one set expects the CPI numbers to come in higher, a Reuters poll indicates a lower inflation reading of 8.7 per cent in July as against 9.1 per cent in June, with core inflation at 0.5 per cent month-on-month.

“With both, the dollar iExpert Anuj Gupta is bullish on Gold and Silver and recommends a buy on Gold and Silver futures.ndex and bond yields holding study, gold prices will face some head winds in the near term. That said, the long term up-move remains very much on the cards,” he added.

 He suggests a buy in MCX October Gold futures at Rs 52300 per 10 gram with a stop loss at Rs 52000 and price target of Rs 52900. First support is seen at Rs 52300 while next support is seen at Rs 51900. The resistance is seen at Rs 52900 and Rs 53300.

As for international prices, resistance is seen at USD 1780 and USD 1770 and resistance at USD 1805 and USD 1815.

The VP recommends buy for MCX September Silver futures at Rs 58500 with a stop loss of Rs 57900 and price target of Rs 59500. Support is seen at Rs 58500 and Rs 57500 while resistance at Rs 60000 and Rs 61200.

As for international prices, support is seen at USD 20.20 and USD 20 while resistance is seen at USD 20.80 and USD 21.10.

Gupta said that current weakness in USD is supporting the safe haven demand of gold.

The current geopolitical tension is also likely to aid the appeal in bullion. In India, the demand for gold and silver will increase as we move closer to the festive season.

“We are expecting that gold and silver may trade higher further,” he added.

Gold may test 53000 to 54000 on MCX and USD 1820-1840 very soon, he estimated. Meanwhile, Silver may test Rs 63000 on MCX and USD 22 in international market.

Investors can add gold and silver in their portfolio, he advised.

At 4:02 pm, October Gold futures were trading at Rs 52387 and were down by Rs 102 or 0.20 per cent from the Tuesday closing price. September Silver futures were trading at Rs 58663 and were down by Rs 128 or 0.22 per cent from the last closing price.