Gold and silver witnessed some profit booking after rallying sharply following the release of the latest data. In the previous session, climbed to around $4112.50 per ounce, while reached approximately the $60.040 range, supported by weaker-than-expected inflation figures and a softer US dollar.
The latest US CPI report came in cooler than market expectations, prompting investors to scale back forecasts for additional Federal Reserve interest rate hikes. Lower inflation has eased concerns about aggressive monetary tightening, improving sentiment toward non-yielding assets such as gold and silver.
However, despite the encouraging inflation data, investors remain cautious. Renewed geopolitical tensions continue to create uncertainty in global markets, while the Federal Reserve’s leadership has reiterated its commitment to restoring price stability. As a result, traders are balancing expectations of a more dovish policy outlook against the possibility of persistent inflationary pressures and geopolitical risks.
Market Overview – Gold and Silver Spot Prices:
During the European session:
Gold Spot (): Around $4017.50 per ounce
Silver Spot (): Around $57.798 range
After yesterday’s strong rally, some profit booking has emerged, but the broader recovery remains intact. If buying interest continues near current support levels, both metals could extend their gains during today’s trading session.
Intraday Trading Strategy Gold and Silver, Spot and Futures:
Gold Spot (XAU/USD)
Buy Zone: $4010 – 4020
Targets: $4070 $4090 $4110
Stop Loss: As per your risk management.
Gold August Futures
Buy Zone: $4015 – 4025
Targets: $4070 $4090 $4110
Stop Loss: As per your risk management.
Silver Spot (XAG/USD)
Buy Zone: $57.700 – 57.900
Targets: $59.100 59.300 59.500
Stop Loss: As per your risk management.
Silver September Futures
Buy Zone: $58.0 – 58.200
Targets: $59.400 59.600 60.000
Stop Loss: As per your risk management.
Conclusion:
1. Following yesterday’s CPI driven rally, gold and silver are experiencing healthy profit booking rather than a decisive reversal.
2. Softer US inflation and a weaker dollar continue to support the medium term outlook for precious metals, although geopolitical developments and Federal Reserve commentary may keep volatility elevated.
3. From a technical perspective, buying on dips near key support levels could present opportunities if bullish momentum resumes.
4. Traders should closely monitor US dollar movements, economic data releases, and risk sentiment, while maintaining disciplined risk management in the current volatile environment.
5. The trading strategy above reflects a market opinion rather than a certainty.
6. Precious metals can be highly volatile, so consider using appropriate stop loss levels and position sizing that match your risk tolerance.