In the international markets, Spot gold rose 0.3% to $1,920.60 per ounce after hitting its highest level since August 10. US gold futures were flat at $1,948.70.
However, the October gold futures were trading at Rs 58,790 per 10 grams on the MCX at 10.26 a.m. and were down by Rs 29 or 0.05% from Wednesday’s closing price. Meanwhile, the September Silver futures were trading at Rs 73,847 per kg and were lower by Rs 157 or 0.21% around this time.
The Federal Reserve is holding its annual symposium in Jackson Hole, Wyoming, from Aug. 24-26, with investors’ focus on Chair Jerome Powell’s speech on Friday for confirmation on whether interest rates are going to stay higher for longer.
“Gold prices hovered around the $1900 level on Wednesday, with spot gold at Comex trading marginally up by 0.19% at $1901 per ounce in the morning session. Gold prices stuck in a choppy range as traders awaited a speech by Federal Reserve Chair Jerome Powell later this week,” Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities, said.
“Additionally, strength in the dollar index also capped the upside. The US Dollar Index, which measures how the dollar performs versus the other six major currencies, saw strength on Tuesday and concluded the day on a positive note,” Gandhi added.
Meanwhile, Comex Spot Gold has support at $1888 and resistance at $1912. The MCX Gold October future is expected to trade in a range of Rs 58,250 to Rs 58,780, the HDFC Securities expert said.”We believe gold prices should consolidate at the lower end of the range with a moderately positive bias. Traders now look to more US macro data, including preliminary S&P Global Manufacturing PMI for August and New Home Sales Change for July, released later in the evening session,” Gandhi said.
Praveen Singh, AVP – Fundamental currencies & Commodities analyst at Sharekhan, said, “Spot gold closed with a gain of 0.91% at $1914.31 Wednesday. The metal rose on disappointing PMIs out of the UK, Euro-zone and the US. Ten-year US yields closed with a loss of 3.14% at 3.196%, two-year yields at 4.971% were down 1.93%.”
“In a supportive development for gold, the Bureau of Labour Statistics has reported that the US job growth was less robust than initially reported as the number of workers on payrolls through March will be revised lower by at least 306k. The tally may rise further when the final revision is done in early 2024,” Praveen added.
“Support for the yellow metal is at $1908 followed by $1900/$1885. Resistance is at $1932/$1950. Dip buying is favoured,” Praveen said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)