Domestic gold prices jumped by over Rs 830 per 10 gram or 1.2% in evening trade, taking cues from the surge in the international markets. The gains were on account of dollar weakness and a positive commentary from the US Federal Reserve on Wednesday hinting at the likelihood of interest rate cut in September.
At 7:45 pm, the October MCX gold futures were trading at Rs 70,350, up by Rs 695 or 1%. It hit the day’s high of Rs 70,489.
Silver futures also moved in tandem riding on the gains in its shinier peer. The September contracts gained by Rs 940 per kg or nearly 1% to hit the day’s high of Rs 84.534. It shrugged most of its gains around this time, hovering at Rs 83,752, which was a Rs 150 per kg lead over Wednesday’s closing price.
Anuj Gupta, Head Commodity & Currency at HDFC Securities, said the chances of a Fed rate cut are more than 80% now and a Fed commentary on the timing in the Wednesday monetary policy has pepped-up the yellow metal.
This current strength in domestic prices is attributed to Comex gold staying above $2,435 mark, buoyed by the US Fed’s dovish stance, hinting at possible rate cuts in September, said Jateen Trivedi, Vice President, Research Analyst – Commodity and Currency at LKP Securities.However, he clarified that the likelihood of cuts will remain contingent to data, particularly higher unemployment and lower inflation. He expects the trading range of Rs 69,600 to Rs 70,300 in the immediate term.In July, gold futures prices declined by 2.69% or Rs 1,927 while they are up by 10.21% or Rs 6,452 per 10 gm on the year-to-date basis. As for silver, the white meta fell 4.10% or by Rs 3,571 in the month gone by. In the year, so far, the gains have been to the tune of Rs 12.31% or Rs 9,166 per kg. Click to know more (https://economictimes.indiatimes.com/commoditysummary/symbol-GOLD.cms) (https://economictimes.indiatimes.com/markets/gold-rate-in-delhi-today)
Intraday trading strategy by Anuj Gupta
– Buy MCX October Gold futures at Rs 69,600 with a stop loss of Rs 69,350 and a price target of Rs 70600.
– Buy MCX September Silver futures at Rs 83,780 with a stop loss of Rs 83,050 and a price target of Rs 85,080.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)