Gold prices slipped on Monday on a stronger dollar index (DXY) following the possibility of a further interest rate hike by the US Federal Reserve gaining ground. The Federal Open Market Committee (FOMC) will meet later this month.

The DXY was hovering close to 103 against a basket of six major currencies.

The August Gold futures were trading at Rs 58,092 per 10 grams at 9:50 am, down Rs 119 or 0.20% while September Silver futures were trading lower by Rs 44 per kg or 0.06% at Rs 69,986. Click to know more

Both gold and silver futures settled with gains on Friday.

On the Comex, Gold futures were trading at $1,923.10 per troy ounce, down $6.30 or 0.33% while Silver futures were trading at $22.960, down $0.060 or 0.260%.

“Overall, the outlook for gold is still tilted downward as interest rates are set to rise further while the safe-haven demand element is missing. Gold ETFs have seen almost continuous outflows for nearly the last three weeks,” Praveen Singh, Assistant Vice President, Fundamental Currencies and Commodities Analyst at Sharekhan said. He sees support at $1,893 – $1,870 for Comex gold while resistance at $1,940 – $1,950.
Gold prices may take cues from manufacturing PMI data of the Euro-zone, the UK, and the US, he said.Gold futures on the MCX have declined 3.44% or Rs 2,072 per 10 grams in June, Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities told ET Markets. They are up by 6% or Rs 3,203 on a year-to-date (YTD) basis, he said. Meanwhile, silver futures have declined nearly Rs 2,100 or 2.91% in value terms in June while they are up 0.94% or Rs 650 on a YTD basis, Gupta added.

The physical price of gold in India stood at Rs 59,500 per 10 grams while that of silver was at Rs 72,000 per kg. Click to know more

Intraday Trading Strategy by Anuj Gupta

– Sell MCX August Gold futures at Rs 58,500 with a stop loss of Rs 58,850 and a price target of Rs 58,000

– Buy MCX July Silver futures at Rs 69,500 with a stop loss of Rs 68,900 and a price target of Rs 70,800.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)