Gold loses its glitter; some sheen for silver
The Iran-Israel conflict triggered some buying interest during middle of June, but it fizzled out soon. Lack of any meaningful trigger kept the gold price in check in June.
As a result, Comex gold closed almost unchanged at $3,315 at the end of June, representing a 0.06% fall. The performance of Comex silver was relatively better last month with the white metal gaining 9.8% to settle at $36.3 at the end of June.
Global markets lack sheen
Mirroring the trend in the global markets, MCX Gold price closed 0.2% lower to settle at ₹96,111 per 10-grams at the end of June.
MCX silver posted a much better performance, recording a 8.2% gain in June to settle at ₹1,06,325 per kilogram.
As anticipated last month, the price of Comex gold remained range bound and could not breakout out of the broad range of $3,120-$3,450 zone.
As observed last month, only a breakout from this zone would set the tone for the next big move. Until then, expect volatile price action within the $3,120-$3,450 zone.
Relative outperformance
After several months, silver displayed signs of relative outperformance in comparison to gold. Comex silver price managed to breakout above the upper end of the prior range of $30.5-$34.5. As mentioned last month, this breakout imparted upside momentum and the price scaled a high of $37.45 on June 18.
The short-term outlook for Comex silver is positive and the price could head to the next target zone at $39.5-$40.5. A fall below $34 would invalidate this positive outlook.
MCX gold was confined within the broad range of ₹91,000-₹1,00,100. A breakout from this range would trigger a strong move in the direction of the breakout. Above ₹1,02,000, the price could head to the next target zone of ₹1,08,000-₹1,10,000. On the other hand, a breach of the lower end of the range of ₹91,000 would push gold price lower to the next support zone at ₹85,500-₹86,000.
MCX silver price has settled comfortably above the psychological ₹1,00,000 mark since the beginning of June. The silver price has also crossed the upper end of the prior trading range, which is a sign of strength. The short-term outlook for MCX Silver is positive and the price could head to the next target at ₹1,16,500-₹1,18,500 zone. Only a fall below ₹1,01,500 would invalidate the positive outlook.
To summarise, gold is likely to remain range bound but silver looks relatively strong and could inch higher in the short-term.
(The author is a Chennai-based analyst / trader. The views and opinion featured in this column is based on an analysis of short-term price movement in gold and silver futures at COMEX & Multi Commodity Exchange of India. This is not meant to be a trading or investment advice.)

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Deccan Herald
an hour ago
- Deccan Herald
Silver futures hit fresh peak of Rs 1,14,875 per kg
On the Multi Commodity Exchange (MCX), the metal contracts for September delivery hit a record high of Rs 1,14,875 per kilogram in early trade.


Time of India
2 hours ago
- Time of India
Smartworks Coworking Spaces IPO gets subscribed 13.45 times
NEW DELHI: The Rs 583-crore initial public offer of Smartworks Coworking Spaces Ltd garnered 13.45 times subscription on the closing day of bidding on Monday. The three-day IPO received bids for 13,99,08,852 shares against 1,04,01,828 shares on offer, as per NSE data. The portion for Qualified Institutional Buyers (QIBs) attracted 24.41 times subscription. Non-Institutional Investors part got subscribed 22.78 times and Retail Individual Investors (RIIs) part received 3.53 times subscription. Smartworks Coworking Spaces has raised Rs 173.64 crore from anchor investors. The IPO of Smartworks Coworking Spaces hit the capital market on Thursday last week to raise nearly Rs 600 crore as the company intends to expand its business and reduce debt. The company has fixed a price band of Rs 387-407 per share for its IPO. The size of the fresh issue has been reduced to Rs 445 crore from the earlier planned Rs 550 crore, while the offer for sale (OFS) by promoters has been cut to 33.79 lakh shares from 67.59 lakh shares. Of the total proceeds from the fresh issue of shares, the company will use Rs 226 crore for capital expenditure related to the fit-outs in new centres and security deposits for these new centres. It will utilise Rs 114 crore for payment of loans, and the remaining funds will be used for general corporate purposes. The OFS proceeds will go to promoters. Gurugram-based Smartworks, one of the leading managed flexible office space providers, has 48 operational co-working centres with over 1.9 lakh seating capacities. JM Financial Ltd, BOB Capital Markets Ltd and IIFL Capital Services Ltd are the book-running lead managers to the IPO.


Economic Times
2 hours ago
- Economic Times
Sun Pharma settles litigation with Incyte Corp over hair loss drug Leqselvi
Synopsis Sun Pharmaceutical Industries has reached a settlement agreement with Incyte Corporation concerning Leqselvi, a drug for severe hair loss, leading to the dismissal of pending litigation in the US. Incyte has granted Sun a non-exclusive license for oral deuruxolitinib for specific non-oncology indications, including alopecia areata, in the US. Reuters Sun pharma logo( File photo) Sun Pharmaceutical Industries on Monday said it has inked a settlement pact with US-based Incyte Corporation regarding Leqselvi, a drug used for severe hair the terms of agreement, the parties will seek dismissal of the pending Leqselvi litigation in the US District Court for the District of New Jersey, and Sun and Incyte will mutually release each other of all claims that were raised or could have been raised in that litigation, the Mumbai-based drug major said in a statement. As a part of the agreement, Incyte has granted to Sun a limited, non-exclusive license to US Patent Nos. 9,662,335 and certain other related patents with respect to oral deuruxolitinib for certain agreed-upon non-hematology-oncology indications, including alopecia areata, in the US, it added. Sun will pay Incyte an upfront amount, plus ongoing royalty payments until the expiry of the patents, in exchange for the settlement and license, it stated. Other specific terms of the settlement and license agreement are confidential, it added. In a separate statement, the drug firm announced the launch of Leqselvi (8 mg) tablets in the US medication (deuruxolitinib) is indicated for the treatment of adults with severe alopecia areata."The launch of Leqselvi in the US brings an effective, new treatment option for severe alopecia areata to eligible patients and the healthcare providers who treat them," Richard Ascroft, CEO of Sun Pharma North America, said."As a company committed to launching new therapeutic options which address the unmet needs of patients, adding Leqselvi to our dermatology portfolio represents a key milestone for the business and an important advancement for the alopecia areata community," he added. Shares of Sun Pharma ended 0.54 per cent higher at Rs 1,681.45 apiece on the BSE.