Gold Price Today: Banking Profits To Capitalize On Thursday’s Rebound, Analyst Says; prospects remain dim
Gold Price Today: The price of gold rebounded on Monday after the European Central Bank announced a 50 basis point rate hike on Thursday to tame inflation. This sparked a rally in the Euro taking some strength from the Dollar Index (DXY). A weaker US dollar helped the yellow metal rebound, said commodity expert Anuj Guta.
Selling pressure from gold and silver in global markets is keeping bullion prices on edge. The pressure is likely to continue in the short term, Gupta said. The price of gold fell 0.9% in the international market between Monday and Wednesday trading sessions this week, commodity expert Gupta said. Meanwhile, silver prices are down 1.20% over the period, he added.
The strength of the dollar index (DXY) is impacting its safe-haven appeal despite fears of an economic slowdown and geopolitical tensions, Gupta said. Gold should remain on guard as investors watch closely for the US Federal Reserve meeting scheduled for July 25-26.
Gupta, who is Vice President (VP), Commodities and Currency Research at IIFL Securities recommends a sell on MCX Gold and Silver Futures. Gold and silver futures prices rebounded in the evening session and this opportunity should now be used to book profits, the VP said.
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On Thursday, the MCX August Gold Futures closed at Rs 50,431 for 10 grams and rose almost 0.4% or Rs 206 from Wednesday’s closing price. His advice to intraday traders is to sell August gold futures at Rs 50700 with a stop loss of Rs 51050 and a price target of Rs 50200. He sees support in gold futures August gold at Rs 50000-49600 while resistance at Rs 50700-51000.
Today, MCX Gold futures opened almost flat, but with a negative bias. The yellow metal futures were trading at Rs 50,363 and were down Rs 12 from the last closing price.
Meanwhile, MCX Silver Futures was trading at Rs 55,277 per kg as of 09:36 and was down 0.24% or Rs 134 from Thursday’s closing price. Silver futures closed at Rs 55,440 the previous day and rose by Rs 179 or 0.32%.
Selling is advised in MCX Silver futures at RS 56,000 with a stop loss of Rs 56,750 and a target of Rs 54,700, Gupta said. Support is seen at Rs 55,000 and 54,400 while resistance at Rs 56,100-56,800, he added.
(Disclaimer: Opinions/suggestions/advice expressed here in this article are investment experts only. Zee Business suggests its readers consult their investment advisors before making any financial decisions.)