Gold and silver prices dropped in early trading due to a stronger Dollar Index. Gold futures on the MCX have declined by 3.73% in June, while silver futures have declined by 3.53% in value terms. Intraday trading strategy suggests selling MCX August Gold futures and buying MCX July Silver futures. The physical price of gold in India stood at Rs 59,500 per 10 grams and silver at Rs 71,000 per kg.
Gold and silver prices traded differently in early trade on Wednesday. While gold prices traded in the green, silver futures declined. The Dollar Index remained flat, providing some support to gold prices. However, the outlook for gold remains weak, with key support levels at around $1,900 and $1,870. Gold futures have declined in June but are up on a year-to-date basis. Silver futures have declined in June but have a marginal gain on a year-to-date basis. The physical price of gold in India stood at Rs 59,500 per 10 grams.
Gold prices increased in early Tuesday trading due to a weaker US dollar index. August Gold futures rose by 0.19% to reach Rs 58,521 per 10 grams, while July Silver futures increased by 0.40% to reach Rs 69,462 per kg. Despite the positive outlook, the potential for US inflation data to influence precious metal trends could create volatility. While gold futures on the MCX fell by 3.06% or Rs 1,844 per 10 grams during June, they are up 6.24% or Rs 3,531 on a year-to-date basis. Meanwhile, silver futures have declined by 4.06% or Rs 2,930 in June and are down 0.26% or Rs 180 on a YTD basis.
On Monday, the price of gold rose, supported by a weaker Dollar Index, which declined 0.2%, though the Federal Reserve s mixed commentary on interest rate hikes has resulted in prices remaining rangebound. August gold futures on the MCX stood at Rs 58,460 per 10 grams, up Rs 153 or 0.26%, while silver for July added Rs 833 per kg or 1.22%, trading at Rs 68,916 per kg. Gold futures have fallen 3.28% or Rs 1,947 per 10 grams in June, but have risen 6.05% or Rs 3,328 on the year-to-date basis as of closing price on June 23.
Indian markets ended the week in the red, with the Nifty50 dropping 0.85%. Experts suggest that the futures market will provide cues for Monday s opening, with impacts from US markets over the previous week to be taken into account. Major global events next week include a Policy Panel Discussion led by Chair Jerome Powell at the European Central Bank Forum on Central Banking 2023. Technical data shows that any future corrections should be seen as a buying opportunity while, on a corporate level, technology IPOs and buybacks are also worth tracking.