Gold and silver prices today: Gold edges higher amidst a fall in dollar index and US bond yields
With US inflation data set to be released today, dollar index may weaken further, say experts
- Jul 12, 2023,
- Updated Jul 12, 2023 9:36 AM IST
Gold prices opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 58,900 per 10 grams and hit an intraday low of Rs 58,872. In the international market, prices hovered around $1,938.30 per troy ounce. Meanwhile, silver opened at Rs 71,421 per kg and hit an intraday low of Rs 71,361 on the MCX. The price hovered around $23.24 per troy ounce in the international market.
Anuj Gupta, Vice President of IIFL Securities, said, "As expected yesterday, gold prices increased by 0.19% and closed at 58774 levels on the back of weakness in the dollar. The dollar index is trading at 9-week low levels. It is expected to go down further on back of weak US inflation data, which will be released today. The international market trades at $1938 levels per ounce."
He sees technically strong support at 58500 levels and then 58300 levels, resistance at 59300 and then 59500 levels. Today, one can buy on dips around 58500-58600 levels with a stop-loss of 58300 and for the target of 59300 to 59400 levels. Gold may test $1950-1955 levels in international markets.
Gold prices edged higher amidst a fall in Dollar Index and US bond yields. Investors cautiously awaited US inflation data that could offer more cues on the Federal Reserve's rate-hike policy path. Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "The dollar index fell 0.2% to its lowest level since May 11; while 10-year US Treasury yields also slipped to their lowest in nearly a week. Fed members said the central bank was close to ending its monetary policy tightening; Fed Bank of New York President John Williams reiterated that the central bank was not done raising its short-term rate target. According to the CME Fed-Watch tool, there is a 90% chance of the Fed raising rates by 25bps at their policy meeting on July 25-26. Focus today will be on US CPI data which is expected at 3.1% against the previous data of 4%. Exactly a year back, we witnessed a peak of US CPI at 9.1%. Hence today's data will be very important for further clarity regarding the Fed's monetary policy path. Broader trend on COMEX could be in the range of $1920-1960 and on domestic front prices could hover in the range of Rs 58,550-59,250."
Amit Khare, Associate Vice President of Research at Ganganagar Commodity Limited (GCL), said, "MCX Gold and Silver gave mixed closing yesterday. August gold closed at 58773(0.14%), and September silver closed at 71117(-0.36%), bullion charts are trading in the oversold zone, and good short covering is possible is the near term. Momentum Indicator RSI also indicating the same, So traders are advised to create fresh buy positions in Gold and Silver near the given support level one with the stop loss of support level two and book near given resistance levels: Gold August Support 58600/58300 and Resistance 59000/59200. Silver September support 70600/69900 and resistance at 71600/72000."
Gold prices opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 58,900 per 10 grams and hit an intraday low of Rs 58,872. In the international market, prices hovered around $1,938.30 per troy ounce. Meanwhile, silver opened at Rs 71,421 per kg and hit an intraday low of Rs 71,361 on the MCX. The price hovered around $23.24 per troy ounce in the international market.
Anuj Gupta, Vice President of IIFL Securities, said, "As expected yesterday, gold prices increased by 0.19% and closed at 58774 levels on the back of weakness in the dollar. The dollar index is trading at 9-week low levels. It is expected to go down further on back of weak US inflation data, which will be released today. The international market trades at $1938 levels per ounce."
He sees technically strong support at 58500 levels and then 58300 levels, resistance at 59300 and then 59500 levels. Today, one can buy on dips around 58500-58600 levels with a stop-loss of 58300 and for the target of 59300 to 59400 levels. Gold may test $1950-1955 levels in international markets.
Gold prices edged higher amidst a fall in Dollar Index and US bond yields. Investors cautiously awaited US inflation data that could offer more cues on the Federal Reserve's rate-hike policy path. Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "The dollar index fell 0.2% to its lowest level since May 11; while 10-year US Treasury yields also slipped to their lowest in nearly a week. Fed members said the central bank was close to ending its monetary policy tightening; Fed Bank of New York President John Williams reiterated that the central bank was not done raising its short-term rate target. According to the CME Fed-Watch tool, there is a 90% chance of the Fed raising rates by 25bps at their policy meeting on July 25-26. Focus today will be on US CPI data which is expected at 3.1% against the previous data of 4%. Exactly a year back, we witnessed a peak of US CPI at 9.1%. Hence today's data will be very important for further clarity regarding the Fed's monetary policy path. Broader trend on COMEX could be in the range of $1920-1960 and on domestic front prices could hover in the range of Rs 58,550-59,250."
Amit Khare, Associate Vice President of Research at Ganganagar Commodity Limited (GCL), said, "MCX Gold and Silver gave mixed closing yesterday. August gold closed at 58773(0.14%), and September silver closed at 71117(-0.36%), bullion charts are trading in the oversold zone, and good short covering is possible is the near term. Momentum Indicator RSI also indicating the same, So traders are advised to create fresh buy positions in Gold and Silver near the given support level one with the stop loss of support level two and book near given resistance levels: Gold August Support 58600/58300 and Resistance 59000/59200. Silver September support 70600/69900 and resistance at 71600/72000."