Gold advances while silver remains range bound as US political turmoil intensifies

Gold prices rose above Rs 73,150 while silver traded flat near Rs 89,600 on July 22, 2024, following President Biden's decision to end his re-election bid. Analysts suggest cautious trading strategies as investors await further economic data and Fed policy insights.

In turn, on the 22nd of July in 2024, gold increased its prices, and silver showed a slow and insignificant change after President Joe Biden announced his decision to withdraw from the race for the presidency. This political development has elicited new speculation when it comes to its effect on Trump to seek another term as the president of the United States.

The latest update about the MCX gold futures for the delivery of August 5 is that it was trading at Rs 73,160 per 10 grams which was 0. 23% or Rs 170. On the other hand, September 5 MCX silver futures were flat at ₹89,595 per kg with a bearish trend.

COMEX gold increased by 0 similar to the trends of the international market for the same period . 48% to $2,410. 8 per ounce. Experts explain this increase by a decline of the US dollar in the wake of the political events that occurred during the weekend.

Some suggestions for trading were given by Neha Qureshi, Senior Technical and Derivative Research Analyst at Anand Rathi Commodities & Currencies. She suggested to trade gold August futures at the price of Rs 73,000 with a stop loss of Rs 73600 and a target price of Rs 72400. India’s Qureshi set a target of Rs 88,000 for September silver futures with a stop loss of Rs 91,000 and recommended selling at Rs 90,000.

Anand James, Chief Market Strategist of Geojit Financial Services said that the increase in gold prices was driven by a weaker dollar as well as the expectation of a rate cut on the US. He stressed that markets have shifted towards future economic indicators for clues about the Fed’s monetary policy decisions.

Also Read: Gold Price Update: A marked fall from the record high

However, analysts noted that while the day’s advance may have been a bull run, it was not driven by strong bullish sentiment. Most of the investors are seen to be cautious and waiting for more policy decisions of the Federal Reserve before they embark heavily on the precious metals business.