Gold Futures Face Pressure Amid US Data
Domestic precious metal futures faced downward pressure on Thursday as traders evaluated statements from policymakers and awaited key US inflation data which could influence the Federal Reserve's anticipated shift towards monetary easing.
MCX Gold and Silver Futures Performance:
MCX gold futures for June 5 recorded a decline of 0.29%, or Rs 210, settling at Rs 71,983 per 10 grams. Conversely, MCX Silver futures for July 5 saw an increase of 1.51%, or Rs 1,455, reaching Rs 94,707 per kg.
International Market Analysis:
In the international market, COMEX gold witnessed a 0.35% drop, trading at $2,332.9.
Expert Insights:
Praveen Singh, Associate VP of Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, highlighted the significance of the day's US data releases, including Q1 GDP (second estimate), weekly job data, and pending home sales for April. He indicated potential support for gold at $2321/$2300 and resistance at $2354/$2375.
Singh anticipates a bearish bias in gold trading leading up to the US GDP data release, with limited downside expected prior to the US PCE deflator inflation data, unless there is a significant upside surprise in the GDP figures.
Investment Recommendations:
Neha Qureshi, Senior Technical & Derivative Research Analyst at Anand Rathi Commodities & Currencies, advised selling gold June futures on rallies at Rs 72,100, with a stop loss set at Rs 72,500 and a target price of Rs 71,500. Similarly, for silver July futures, she recommended selling on upticks at Rs 94,800, with a stop loss at Rs 95,800 and a target of Rs 92,800.
