Key Takeaways:
– MCX Gold and Silver futures contracts opened higher on Tuesday.
– Prices recovered from lows due to bargain buying at lower levels.
– Gold and Silver prices showed high volatility last week.
– US Dollar Index was hovering near 105.40 mark.
MCX Gold and Silver Futures Data:
| Metal | Contract | Opening Price | Closing Price | Change |
|———-|————-|——————|——————|———–|
| Gold | August | Rs 71,650 | Rs 71,499 | +0.07% |
| Silver | July | Rs 89,152/kg | Rs 88,865/kg | +0.05% |
Intraday Strategy:
– Buy MCX August Gold futures at Rs 71,700 with a stop loss of Rs 71,300 and a price target of Rs 72,300.
– Buy MCX July Silver futures at Rs 89,300 with a stop loss of Rs 88,300 and a price target of Rs 91,300.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
Gold and silver prices recovered from their lows amid bargain buying at lower levels as domestic and international markets settled on a slightly positive note. Bullion has risen about 13% this year, hitting records due to optimism about US monetary easing in 2024, geopolitical risks, and buying from central banks and Chinese consumers.
Gold and silver prices showed very high price volatility last week as prices fell after the U.S. Fed meeting outcomes but recovered from their lows on Friday after a surge in the U.S. jobless claims and the U.S. University of Michigan inflation expectations at 3.3%.
Today, the US Dollar Index, DXY, was hovering near the 105.40 mark, rising 0.08 or 0.08%. “Today’s major US data on tap include retail sales advance (May) and industrial production (May). A softer-than-expected retail sales report may help the metal recoup some of its losses. However, traders will pay attention to the Fedspeak, too, as they would want to assess the rigidity of the hawkish FOMC outcome,” said Praveen Singh, Associate VP, of Fundamental Currencies and Commodities at Sharekhan by BNP Paribas.
“On the daily timeframe, MCX Gold (August) is trading above its rising trend line. A break above 71,900 could trigger further bullish sentiments. The price is currently above the 50 EMA, which serves as support, indicating strength. Key resistance levels to watch are 71,900 and 72,500, while support levels are at 70,900 and 70,082”, said Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies.
FAQ:
1. Why did gold and silver prices recover?
Gold and silver prices recovered due to bargain buying at lower levels and positive sentiment in domestic and international markets.
2. What factors have contributed to the rise in bullion prices this year?
Factors contributing to the rise in bullion prices include optimism about US monetary easing in 2024, geopolitical risks, and buying from central banks and Chinese consumers.
3. What are the key resistance and support levels for MCX Gold futures?
Key resistance levels to watch for MCX Gold futures are 71,900 and 72,500, while support levels are at 70,900 and 70,082.
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