Gold price today: Gold rates slip in early trade; what should be your strategy?
2 min read 07 Jun 2023, 09:38 AM ISTGold price today: Gold and silver settled on a positive note in the international markets in the previous session. Domestic markets also saw the yellow metal rise. Gold and silver gained as investors rushed to safe-haven assets after escalating Russia-Ukraine tensions.
PremiumGold prices traded lacklustre in early trade in the domestic futures market on Wednesday (June 7) following weak global cues. Gold prices traded in a range in global markets as investors remain cautious ahead of the US Fed interest rate decision next week. The weakness of the dollar index also made gold less expensive for buyers holding other currencies.
Gold and silver settled on a positive note in the international markets in the previous session. Domestic markets also saw the yellow metal rise. Gold and silver gained as investors rushed to safe-haven assets after escalating Russia-Ukraine tensions.
Next week's US Federal interest rate decision is a key factor that will influence the yellow metal prices. "Ahead of the Fed meeting next week, the May US consumer price report due on June 13 will provide investors more clarity about the health of the world's largest economy following recent mixed economic data and dovish remarks from Fed officials," reported Reuters.
MX Gold August futures contract were 0.08 per cent down at ₹59,935 per 10 gram around 9:30 am.
What should be your trading strategy?
Brokerage firms and analysts expect the yellow metal to trade volatile for the session.
Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile today and could hold their support level of $1958 and $23.20 per troy ounce, respectively.
"Gold has support at $1,972-1,958, while resistance at $1,994-2,006 per troy ounce. Silver has support at $23.40-23.20, while resistance is at $23.92-24.20 per troy ounce. At MCX, gold is having support at ₹59,700-59,480 and resistance at ₹60,140-60,385 while silver is having support at ₹71,450-71,100 and resistance at ₹72,350-72,800," said Jain.
"We suggest buying gold on dips around ₹59,750 with a stop loss of ₹59,500 for the target of ₹60,140 and also suggest buying silver around ₹71,500 with a stop loss of ₹70,950 for the target of ₹72,500," Jain said.
Rahul Kalantri, VP of Commodities at Mehta Equities pointed out gold has support at $1,952-1,940 while resistance is at $1,974-1,986. Silver has support at $23.35-23.20, while resistance is at $23.71-23.85.
"In Indian rupee terms, gold has support at ₹59,740-59,580, while resistance is at ₹60,120, 60,280. Silver has support at ₹71,380-70,820, while resistance is at ₹72,340–72,720," said Kalantri.
Brokerage firm SMC Global Securities expects gold to trade in the range of ₹59,500-60,200, silver may also trade in the range of ₹71,500-72,300 where selling near resistance and buying near support is advised.
Disclaimer: The views and recommendations given in this article are those of individual analysts and brokerage firms. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
