Precious metals, including and , remained under intense selling pressure, extending losses for the sixth trading session and heading toward a third consecutive weekly decline. The latest correction has been driven primarily by the strength of the US Dollar Index (), which recently climbed to a 13-month high following the Federal Reserve’s hawkish monetary policy outlook.
During the morning Asian session, Gold August Futures traded near $4067.20 per ounce, while Silver July Futures fell to around $60.783 per ounce. Both metals remain highly volatile as traders continue to assess the outlook for US interest rates. The stronger US dollar and expectations of higher interest rates have weighed heavily on bullion, as non-yielding assets like gold and silver become less attractive. Markets are currently pricing in nearly a 70% probability of a Fed rate hike by September, with another increase expected before year’s end.
Meanwhile, optimism surrounding the US and Iran peace agreement and the reopening of key oil supply routes has reduced safe-haven demand for precious metals. As geopolitical tensions ease, market attention has shifted firmly toward monetary policy and the direction of the US dollar. Despite the recent sell-off, I believe the sharp decline has increased the likelihood of short covering and profit booking before the US market opens, which could support a technical rebound in both gold and silver.
Intraday Strategy Gold and Silver Futures:
Buy Gold August Futures
Buy Zone: $4065 – $4070
Targets: $4110 $4130 $4150
Stop Loss: As per your risk management.
Buy Silver July Futures
Buy Zone: $60.600 – $60.800
Targets: $62.000 $62.500 $63.000
Stop Loss: As per your risk management.
Conclusion:
1. After several sessions of heavy selling, the probability of short covering and profit booking has increased.
2. Traders holding profitable short positions may consider booking gains, while fresh buying opportunities could emerge if prices stabilize near current support levels.
3. Keep a close watch on the US dollar, , and upcoming economic data, as they are likely to drive the next major move in gold and silver.