Prior to Federal Reserve Chairman Jerome Powell’s congressional hearing, gold prices on the MCX on Wednesday, June 21, traded subpar in early trade as they followed subpar global cues and the dollar’s increase.
“Powell delivers a semi-annual monetary policy testimony to the US House Financial Affairs Committee at 1400 GMT,” as it was stated, “and market participants will be looking out for the central bank’s thinking on the need for further interest rate increases amid hawkish remarks from policymakers.”
According to media reports, the price of silver for July futures contracts finished at $23.23 per troy ounce, down 3.27 percent, and the price of gold for August futures contracts settled at $1,947.70 per troy ounce, down 0.74 percent. The domestic market saw a loss of 0.59 percent for the Gold August futures contract to end at 58,809 per 10 grams and a loss of 2.84 percent for the Silver July futures contract to settle at 70,387 per kilograms.
Around 9:45 am, MCX Gold August futures were trading flat at 58,816 per 10 grams.
What should your plan of action be?
Ahead of Powell’s speech, analysts and brokerage houses anticipate that gold will stay volatile for the session.
Rahul Kalantri, vice president of commodities at Mehta Equities, anticipates that the price of gold and silver will remain erratic today.
“Gold’s support and resistance levels are $1,926 and $1,916 respectively. Support and resistance levels for silver are $22.92-22.78, and $23.32-23.48 respectively. Support for gold in Indian rupees is located between 58,640 and 58,480, while resistance is found between 59,020 and 59,290. Support and resistance levels for silver are 69,820-69,420 and 70,740-71,420, respectively, according to Kalantri.
In today’s session, Manoj Kumar Jain of Prithvifinmart Commodity Research anticipates that gold and silver prices will remain erratic and take cues from the Fed Chairman’s remarks on interest rates and the US economy.
“Gold’s support and resistance levels per troy ounce are $1,934 and $1,922, respectively. Support for silver is located at $23-22.70, and resistance is found at $23.50-23.80 per troy ounce, according to Jain.
“At the MCX, silver is supported at 69,800-69,250 and resistance is found at 70,850-71,400 while gold is supported at 58,580-58,350 and resistance is found at 59,000-59,220. We advise avoiding gold and silver for the current session in order to wait for additional cues from the Fed Chairman’s speech.