According to ET, gold prices have been rising for the third straight month, driven in part by strong demand from central banks and investors seeking safe-haven investments.
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In the US markets, gold is holding steady at about $2,330 per ounce. This represents an increase of almost 5% this month, ahead of the upcoming US Federal Reserve meeting. The Fed is expected to take a more cautious approach due to high inflation, which could affect future interest rate cuts.
Even though the Federal Reserve might not cut interest rates as quickly as expected, gold prices have risen by over 13% this year. This increase is supported by large purchases from central banks, strong demand from Asian markets like China, and ongoing geopolitical issues in regions like Ukraine and the Middle East.
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The US dollar has recently weakened, making gold, which is priced in dollars, more attractive to international buyers. This effect was intensified by rumors that Japan might step in to support its currency, the yen. If Japan intervenes, it could further weaken the dollar, which would likely boost gold prices.
Today, the US Dollar Index (DXY) was around 105.85, up by 0.27 points or 0.25%.
According to Neha Quereshi from Anand Rathi Commodities & Currencies, Gold (June) seems to be in a downtrend as its highs and lows are getting lower. The price is currently held within a rising channel, but if it falls below 70,200, it could indicate a further drop. The Relative Strength Index (RSI) also shows a pattern of lower highs and lower lows, suggesting a bearish outlook. Key resistance levels are 71,800 and 72,300, while important support levels are 71,200 and 70,700.
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Here’s Neha Quereshi’s intraday trading strategy:
– For June gold futures on MCX, sell at Rs 71,600, set a stop loss at Rs 72,000, and aim for a price target of Rs 71,200.
– For July silver futures on MCX, sell at Rs 82,400, set a stop loss at Rs 83,400, and aim for a price target of Rs 80,400.
