Gold Price Today June 24: US Dollar strength lowers shine in yellow metal; expert gives near term strategy, intraday trading levels

Gold continued its weakness on Thursday on the back of a stronger US Dollar. The sentiments around bullion are currently down and are likely to remain like this in the near term, Expert Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL said. Gold and Silver Futures were trading lower from the last closing price on Wednesday and the movement is expected to remain muted today on the intraday basis, Gupta said.  

Among the key triggers higher US Dollar rate has been among the immediate triggers that has kept the upward movement in check. Over the past two weeks other important factors that have contributed to the price movements (upwards or downwards) have been bond yields, inflation numbers, interest rate commentary by US Federal reserve and US job numbers.  

For traders, the strategy remains that of Selling in Gold and Silver futures, Gupta said.   

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Gupta, however, said that the existing weakness is a good investment opportunity for long term investors. June has been a good month for investors who have been planning to make fresh investments in yellow metal as the prices have come down appreciable this month not just in Gold but silver as well.  

Gupta said that the MCX Gold Futures have become cheaper by over 4.6 per cent in June while MCX Silver Futures prices have come down by over 6 per cent during this period. In terms of value, Gold Futures prices have dipped by over Rs 2300 per 10 gram while Silver Futures prices by Rs 4000 per kg.   

As for domestic prices, the fall has started reflecting not only on exchanges but in the physical markets too, Gupta said. In Delhi, the price of physical gold has come down to Rs 47,500 per 10 gram while that of silver is Rs 68,500, Gupta said.   

In Noida jewellery markets, the prices are more or less similar, the VP said.     

He expects more correction in the international prices, going forward, but that could have limited impact because of strengthening US Dollar leading higher exchange rates.    

Gold futures on Wednesday were trading around USD 1775 while Silver futures were trading around USD 25.84. He expects Gold Futures to test levels around USD 1740 while Silver Futures to test levels around USD 24.50 within a fortnight if the negative sentiments continue. 

MCX Gold Trading Strategy     

MCX August Gold Futures were trading at Rs 46,987 per 10 gm, getting cheaper by Rs 85 or almost 0.2 per cent from the last closing price on Wednesday. His strategy for today is to Sell at Rs 47,000. He puts the stop loss at Rs 47,250. He puts the target price at Rs 46,600.    

MCX Silver Trading Strategy     

Meanwhile, MCX July Silver Futures were trading at Rs 67,832 per kg on Thursday around this time, down by Rs 100 or 0.15 per cent from the last closing price. He recommended selling at Rs 67,800. He puts the stop loss at Rs 68,300 while the target price at Rs 67,000.    

As for prices in Dubai, 24k Gold was trading at AED 215 (4,345.48 Indian Rupee) per gram while 22k was trading at AED 202 (4,082.18 Indian Rupee). This information has been sourced from Dubai Gold & Jewellery Group (DGJG) website. The website claims DGJG to be the largest trade body for Dubai’s jewellery industry (DGJG).