Web Stories Tuesday, June 25
Amid increased hope of rate cuts later in the year, gold prices on MCX for June futures contracts opened on a flat note on Thursday to trade at Rs 73,100 per 10 grams. In the last two days, gold prices went up by nearly Rs 800 while MCX July silver contracts were up by Rs 292 or 0.34% to Rs 87,157 per kg increasing by Rs 1,448 in 2 days.

Gold prices inched up today following a sharp rise in the last session as the dollar and bond yields weakened on the increasing likelihood of rate cuts by the U.S. Federal Reserve as early as September.

This boosted gold’s appeal as an investment. The dollar also weakened, and Treasury yields fell after the inflation report, which further supported gold prices.

In the U.S. markets, Spot gold rose 0.1% at $2,388.10 per ounce, as of 0255 GMT, after gaining more than 1% to its highest since April 19 on Wednesday. U.S. gold futures rose 0.1% to $2,393.20.

Today, the US Dollar Index, DXY, was hovering below the 105 mark at 104.16, dropping 0.18 or 0.18%.“Currently, there’s a 61% chance that the Federal Reserve might change its stance by September, compared to 30% in April. Gold had been trading in a narrow range recently after hitting a record high in mid-April,” said Neha Quereshi of Anand Rathi Commodities.The daily trading chart for gold is showing a bullish engulfing candlestick pattern, along with forming higher highs and higher lows, indicating a positive trend in its price. This optimism is further supported by gold bouncing back from its 21-day exponential moving average (EMA), which is acting as a support level. Moreover, a positive divergence in the Relative Strength Index (RSI) indicates growing market momentum. It’s important to monitor potential resistance levels at 73,315 and 73,958. On the downside, support levels are positioned at 72,700 and 72,200, Quereshi added.Intraday Trading Strategy by Neha Quereshi:

– Buy MCX JUNE Gold futures at Rs 73000 with a stop loss of Rs 72600 and a price target of Rs 73500

– Buy MCX JULY Silver futures at Rs 86900 with a stop loss of Rs 85900 and a price target of Rs 88900

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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