Gold Price Today: Yellow metal jumps to 5-week high on softer US inflation print. What should investors do?
Gold and silver prices fluctuate slightly in early trading following a strong rally fueled by US inflation data.
Gold prices traded marginally higher early on Friday amid some profitbooking after a strong Thursday rally which saw the yellow metal breach its highest levels in five months after softer US inflation data cheered Street on hopes of at least two rate cuts this year.The Indian bullion prices took their cues from the international prices to trade with declines.
The MCX August gold futures were trading at Rs 73,254 per 10 gram around 10 am today, correcting by Rs 57 or 0.08% while the May contracts were down by over Rs 400 per kg or 0.43% at Rs 93,789.
The recent gains in bullion prices were on account of some weakness in the dollar index (DXY). It has fallen by 0.4% in the last five sessions and is currently hovering over 104 mark.
On the Comex, Gold futures were trading at Rs 2,414.70 per troy ounce, down by $7.20 or 0.30% while sIlver contracts were at $31.46 per troy ounce, down by $0.21 or 0.67%.
Silver also increased sharply by 1.46% and closed at 5-week high level at 94190. International silver is trading at $31.20 levels.
Gold prices increased sharply by 0.88% and closed at 5 week high levels at 73,311 levels, expert Anuj Gupta, who is Head Commodity & Currency at HDFC Securities said. He attributed this to US softer inflation data data boosting chances for at least two cuts in interest rates, this year. This is a strong positive for the bullion, he opined expecting the bullish trend to continue in gold and silver.
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Intraday trading strategy by Anuj Gupta:
– Buy MCX August Gold futures at Rs 72,975 with a stop loss of Rs 72,700 and a price target of Rs 73,600.
– Buy MCX September Silver futures at Rs 93,500 with a stop loss of Rs 93,400 and a price target of Rs 94,400.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
