Key Takeaways:
- Gold prices on MCX fell after hawkish comments from the US Fed chief Jerome Powell, indicating only one interest-rate cut this year.
- US inflation easing in May led to a rise in Treasury yields and the dollar, negatively impacting gold prices.
- Despite gains on Wednesday, gold and silver could face downward pressure from future interest rate cut talks.
- Technical analysis suggests potential downside movement for gold with key resistance and support levels to watch.
Gold and Silver Prices Update:
| Commodity | Price | Change |
|---|---|---|
| Gold (August futures) | Rs 71,489 per 10 grams | Decrease of Rs 481 (0.67%) |
| Silver (July futures) | Rs 88,469 per kg | Decrease of Rs 2,000 (2.18%) |
After three days of gains, gold prices on MCX fell following the US Fed’s indication of fewer interest rate cuts than expected. US inflation easing in May also impacted prices, causing gold and silver to settle lower after a positive day on Wednesday.
Technical analysis by experts suggests a potential downside movement for gold, with resistance and support levels to watch closely. Despite a 12% increase in gold prices this year, recent developments could lead to further declines.
Intraday Trading Strategy:
- Sell MCX August Gold futures at Rs 71,900 with a stop loss of Rs 72,500 and a price target of Rs 71,000.
- Sell MCX July Silver futures at Rs 90,400 with a stop loss of Rs 91,400 and a price target of Rs 88,400.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
FAQ:
1. Why did gold prices fall after the US Fed’s comments?
Gold prices fell due to the US Fed chief’s indication of only one interest-rate cut this year, instead of the three previously forecast. This led to a rise in Treasury yields and the dollar, negatively impacting gold prices.
2. What impact did US inflation easing have on gold prices?
US inflation easing in May caused gold prices to rise initially, but the prospect of higher rates following the Fed’s comments reduced gold’s appeal. This led to a decline in gold and silver prices.
3. What are the key resistance and support levels for gold to watch?
According to technical analysis, key resistance levels for gold are at 71,900 and 72,500, while support levels are at 70,900 and 70,082. Breaking below 70,900 could indicate further downside movement.
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