Gold, silver prices lacklustre after US, EU trade deal; what should be your strategy for MCX Gold, Silver now?

Gold price today: Gold and silver traded lacklustre in the domestic futures market Monday (July 28) morning after a trade deal between the United States (US) and the European Union (EU) boosted investors' risk appetites, moving them towards equities. A stable dollar also limited the demand for precious metals.

MCX Gold August 5 contracts traded with a nominal gain of 0.07 per cent at ₹97,890 per 10 grams, while MCX Silver September 5 contracts were 0.05 per cent up at ₹1,13,107 per kg around 9:15 AM.

US President Donald Trump and European Commission President Ursula von der Leyen agreed on a broad trade agreement that sets 15 per cent tariffs on most European imports. This averts Trump's earlier warning of a 30 per cent rate if a deal isn't struck by 1 August.

Investor attention is now firmly on the monetary policy decisions of the US Federal Reserve and the Bank of Japan (BoJ) this week. While both central banks are widely expected to keep interest rates unchanged, their policy statements and forward guidance will be closely scrutinised for clues on the future trajectory of interest rates.

Experts note that the recent trade deal with Japan has created room for the BoJ to consider another rate hike later this year.

"Investors are bracing for a busy week ahead, featuring a Federal Reserve policy meeting and a slew of economic data releases. The Fed is widely expected to keep rates unchanged, but investors will closely watch for any signals of a potential rate cut in September," said Jigar Trivedi, Senior Research Analyst at Reliance Securities.

What should be your strategy for MCX Gold, Silver

Manoj Kumar Jain of Prithvifinmart Commodity Research suggests buying gold for the target of ₹98,300 even though he expects prices to remain volatile.

"We expect gold and silver prices to remain volatile this week amid volatility in the global financial markets, the Fed's monetary policy meeting and the US trade tariff deadline. We suggest buying gold around ₹97,700 with a strict stop loss of ₹97,380 for the target of ₹98,300," said Jain.

According to Jain, gold has support at $3,309-3,280, while resistance is at $3,355-3,370 per troy ounce. Silver has support at $38.00-37.70, while resistance is at $38.74-39.09 per troy ounce in today’s session.

MCX Gold has support at ₹97,440-97,100 and resistance at ₹98,280-98,600 while silver has support at ₹1,12,200-1,11,000 and resistance at ₹1,14,000-1,15,115, Jain said.

According to brokerage firm Motilal Oswal, MCX Gold has supports at ₹97,500 and ₹97,000, while resistance is at ₹98,300 and ₹98,700.

MCX Silver has support at ₹1,12,400 and ₹1,11,800, while resistance is at ₹1,13,700 and ₹1,14,200.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.