Gold price today: Gold prices saw gains in morning trade in the domestic futures market on Wednesday, July 3, tracking positive global cues ahead of the minutes of the Federal Reserve's lastest policy meeting, which may give hints about when the US central bank may start the rate-cutting cycle.
Expectations are still high that the US Fed will start reducing policy rates from September this year. According to the CME FedWatch Tool, traders think there is a 67 percent chance of a rate cut in September.
While the US gold futures gained about 0.5 per cent, the MCX Gold for August 5 delivery rose about 0.4 per cent to the level above ₹71850. Around 11:40 am, MCX Gold traded 0.43 per cent higher at ₹71,864 per 10 grams.
Gold prices outperformed the equity benchmark Nifty 50 in the first half of the year (H1CY24) amid robust buying of the precious metal from central banks, geopolitical uncertainty and hopes of rate cuts. Domestic spot gold prices rose nearly 14 per cent in H1CY24, while the equity benchmark Nifty 50 rose nearly 11 per cent.
Many experts believe geopolitical tensions, central bank buying, macroeconomic uncertainty, potential monetary easing by the US Fed, and robust Chinese retail demand will likely sustain the bullish trend in gold prices.
What should be your strategy for MCX Gold today?
Experts expect gold prices to see some volatility, reacting to US macro data and dollar's movement. Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week ahead of the key US data and volatility in the dollar index.
He said international gold has support at $2,322-2,310, while resistance at $2,350-2,368 per troy ounce and silver has support at $29.33-29.05, while resistance is at $29.88-30.20 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹71,330-71,100 and resistance at ₹71,800-72,040, while silver has support at ₹89,400-88,800 and resistance at ₹90,500-91,100.
Jain suggests buying gold on dips around ₹71,400 with a stop loss of ₹71,180 for the target of ₹71,850.
Ajay Kedia, the director of Kedia Advisory, pointed out that gold is exhibiting positive momentum on the hourly timeframe, with prices trading firmly above the 50-period moving average (MA).
This upward trajectory indicates strong bullish sentiment, suggesting a continued rise in value. Kedia advises traders to watch for sustained movement above this key support level, which could signal further gains even as the overall current technical setup favours gold.
In his views, gold may trade in the range of ₹71,200-72,020 for the day, with support at ₹71,380 and resistance at ₹71,790. According to brokerage firm Motilal Oswal Financial Services, MCX Gold may trade in a range for the session. "Support for gold is placed at ₹71,500-71,300, while resistance is at ₹71,850-72,050," said Motilal Oswal.
