As the bullion displayed volatility over the last few days, the August futures of the yellow metal opened 0.55% or Rs 396 higher at Rs 72,914 per 10 grams, while silver July futures opened at Rs 91,550/kg, 1.22% or Rs 1,106 higher.
Gold and silver recovered from their lows amid interest rate cuts by the Bank of Canada while the trends still remain volatile.
On Wednesday, gold and silver settled on a positive note in the domestic markets where the gold August futures contract settled at Rs 72,518 per 10 grams with a gain of 0.72%, and the silver July futures contract settled at Rs 90,444 per kilogram with a gain of 0.88%.
Gold and silver showed very high price volatility and recovered from their lows after the Bank of Canada cut interest rates by 25 basis points to 4.75%. Interest rate cuts by the BOC might further give a boost to bullion prices.
“After reaching a record high last month, gold has traded within a narrow range due to uncertainty over the Fed’s rate path. Markets are cautiously optimistic about rate cuts, with two almost fully expected in 2024,” says Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.Today, the US Dollar Index, DXY, was hovering near the 104.09 mark, falling 0.18 or 0.17%.MCX Gold (August) is currently trading above its rising trend line and has formed a bullish candlestick pattern, indicating bullish sentiments in the market. It has broken above the 21-day EMA, which signals further upward movement. Key resistance levels to watch are at 72,800 and 73,300, while support levels are at 72,100 and 71,700, added Qurehshi.Intraday strategy by Neha Qureshi:
– Buy MCX August Gold futures at Rs 72,600 with a stop loss of Rs 72,200 and a price target of Rs 73,200
– Buy MCX July Silver futures at Rs 90,500 with a stop loss of Rs 89,500 and a price target of Rs 92,500
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