Gold price in India jumped on Friday for the first time this week. Yellow metal price remained under pressure throughout the week as investors are keenly waiting for US Federal Reserve chairman Jerome Powell’s speech scheduled later in the day at the Jackson Hole symposium. On the Multi-Commodity Exchange (MCX), October gold contracts climbed 0.35 per cent to Rs 47,403 for 10 grams at 0930 hours on August 27. Silver price also edged higher on Friday after declining for the last four days. The precious metal price rose 0.27 per cent to Rs 62,892 on August 27.
In the international market, gold prices were steady on Friday. Spot gold rose 0.1 per cent to $1,793.68 per ounce by 0104 GMT while US gold futures rose 0.1 per cent to $1,796.70, according to Reuters. Silver was flat at $23.54 per ounce. On Thursday, Federal Reserve’s policymakers requested the US central bank to start paring bond purchases they feel have become ineffective, if not downright harmful.
“US GDP report for the second quarter showed a 6.6 growth rate This was 6.5 per cent reported in the first GDP estimate for the second quarter. The closely watched PCE price index of the GPD report came in at up 6.5 per cent versus the first estimate of up 6.4 per cent. The Fed’s Bullard on CNBC said the PCE index and price inflation in general is ‘higher than we’d expected.’ The PCE index is just one more indicator that inflation is running too hot,” said Amit Khare, AVP-research Commodities, Ganganagar Commodities Limited.
“Dallas Fed President Robert Kaplan said the strength of the US economy still puts the Fed on track to begin reducing its monthly bond purchases in October or soon after. Holdings of SPDR Gold Trust fell 0.3 per cent, while those of iShares Silver Trust were unchanged on Wednesday from Tuesday. Markets will look ahead to the eagerly awaited speech from Fed chair Jerome Powell’s speech. There is also a remote possibility that the Fed chair may not announce anything in his speech on Friday and could make an announcement at the September meeting after the awaiting the August non-farm payroll number in the 1st week of September. However, a more cautious tone will be dovish for the dollar and further aid bullion,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Technically, LBMA Gold below $1795 level could see a some sideways to marginal downside momentum up to $1786-$1770 levels. Resistance is at $1805-$1820 levels. LBMA Silver above $23.50 level could see $24.10-$25.22 levels. Support is at $23.40-$22.65 levels. Domestic gold prices and silver prices could start flat this Thursday morning, tracking overseas prices. On the domestic front, MCX Gold October could see sideways momentum where support is at Rs 47,050-46,800 levels resistance is at Rs 47,450-47,550 levels. MCX Silver September below Rs 63,000 level could see Rs 62,600-62,000 levels. Resistance is at Rs 63,200-64,000 levels,” he added.
“The key outside markets today see the US dollar index firmer and still trending higher. Nymex crude oil futures prices are weaker and trading around $68.00 a barrel. Meantime, the yield on the benchmark US 10-year Treasury note is presently fetching 1.346 per cent. US bond yields are in the rise this week, hinting that bond traders are at least a bit worried about a hawkish US monetary policy tone coming from the Fed at this week’s Jackson Hole confab,” Khare added.
“Gold and silver are making bottom and Momentum indicator RSI creating a strong positive divergence in Silver in daily as well as four hourly chart, any dips is a opportunity to create fresh long positions in Bullions, Fundamentals also in support of bullions. So traders are advised to create fresh buy positions in gold and silver near given support levels, traders should also focus important technical levels given below for the day: August gold closing price Rs 47,237, Support 1 – Rs 46,900, Support 2 – Rs 46,700, Resistance 1 – Rs 47,500, Resistance 2 – Rs 47,725. September silver closing price Rs 62,723, Support 1 – Rs 62,200, Support 2 – Rs 61,750, Resistance 1 – Rs 63,250, Resistance 2 – Rs 64,000,” Khare further mentioned.
“Gold price are seeing some bullish traction from the lower range of the range and trading above 50-DEMA. Market participants are expecting to get more clarity and insights on precious metal from the speech of Fed chairman at the Jackson Hole Economic Symposium. Increasing threats of delta variants are likely to negatively impact economic growth which may force fed reserve to take a step back and would be a bullish trigger point both for Gold and Silver.
Gold on MCX is also closed mostly unchanged and awaiting more clarity on tapering timelines from the Fed meeting. The outlook for the gold is positive however we may see sharp moves in prices either side based on the outcome of the fed meeting. Key level for gold August contract – Rs 47,185. Buy Zone Above – Rs 47,185 for the target of Rs 47,433-47,630. Sell zone below – Rs 47,150 for the target of Rs 46,987-46,700,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.
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