Gold Price Today: Commodity Strategies: How Gold and Silver Can Trade
Gold August futures closed almost unchanged on Wednesday as price continued to consolidate in a wider range, between Rs. 46600-47380. Price rallied towards the upper band of the range but erased its gains as it faced strong resistance near the 250-day EMA at Rs. 47,380. Price is expected to break above said resistance level to extend his earnings to Rs. 47750-47900 levels. On the downside, Rs. 46,600 holds key support, followed by Rs. 46,220 (61.8% Fibonacci retracement level of the uptrend). The bearish cross of the 10 and 50 day EMA has lowered bullish bets on gold futures. On the momentum front, the MACD reversed as the histograms turned negative, suggesting a lower sideways trend. So, for the day, the trading range would be between Rs. 46600-47380. Only a closing break on either side would bring more clarity to the trend.
The MCX Gold August futures trading range is between Rs. 46600-47380.
MCX Silver July futures received strong support from Rs. 67,000 levels and rebounded to the nearest resistance area at Rs. 68,850. However, the price failed to capitalize on its gains and closed almost unchanged with the formation of a Doji candle. If silver manages to settle above Rs. 68,900, then it would test the next key resistance levels of Rs. 69750-70200. On the other hand, key support for July futures exists around Rs. 66,900 (61.8% Fibonacci retracement level), which coincides with the lower Bollinger Band. A drop below key support would extend the decline to the next support at Rs. 65,500. Short term momentum has turned negative as the RSI hovers around 36. So for the day the price may continue to move into the range of Rs. 66900-68900 with a lateral bias. Only a close below Rs. 66,900 would extend the weakness to Rs. 65,500.
The MCX Silver July futures trading range is between Rs. 66900-68900.
(Ravindra Rao, CMT, EPAT is VP-Head Commodity Research at Kotak Securities)