Gold prices edged higher on Thursday in the international market, the US dollar slipped as investors await a speech by the US Federal Reserve Chair Jerome Powell at the Jackson Hole symposium for clues on interest rate hikes and the health of the economy.
Spot gold was 0.1% higher at $1,753.01 per ounce, as of 0110 GMT. US gold futures were up 0.3% at $1,766.
At 9.35am, gold contracts were trading 0.33 percent higher on the Multi-Commodity Exchange (MCX) at Rs 51,610 per 10 grams and silver added 0.69 percent at Rs 55,315 a kilogram.
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Pritam Patnaik, Head - Commodities, HNI and NRI Acquisitions, Axis Securities
What the US Fed chair states during the “Jackson Hole” event is going to be the deciding factor for the future trajectory of not only the interest rate, but also for bullion prices. With wagers increasing to 61%, for a 75 basis point hike in this next Fed meeting, along with a hawkish stance broadly adopted by individual Fed members, a secular rally in gold looks unlikely in the near term.
If the Fed chair surprises us with a mildly dovish accommodative stance, we could see some rally in gold. The probability of the same is bleak, as the Fed is fixated with its 2% inflation target, which would require aggressive hikes.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
Gold prices traded firm on Thursday with COMEX Spot gold prices were trading 0.24 percent up near $1756 per ounce in the morning trade. Gold prices recovered with dollar decline and weak US economic data. The traders and investors are awaiting for comments from Fed chair from Jackson Hole symposium over future course.
We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1740 and resistance at $1770 per ounce. MCX Gold October support lies at Rs 51200 and resistance at Rs 51800 per 10 grams.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver ended on a mixed note on Wednesday. Gold futures recovered from early losses to finish a bit higher, with prices holding above $1,760 per ounce ahead of Federal Reserve Chairman Jerome Powell’s speech later this week at the Jackson Hole economic symposium. Bullion has been edging higher over the past few sessions after a six-day run of losses that pushed it to a three-week low on Monday.
However, the US 10-year bond yields gained and crossed the 3.10% mark once again. On the other hand, silver prices struggled due to downbeat US economic data.
We expect gold and silver prices to remain volatile in today’s session ahead of the Jackson Hole symposium. Gold has support at $1746-1731, while resistance is at $1770-1781. Silver has support at $18.78-18.55, while resistance is at $19.22-19.40. In rupee terms gold has support at Rs 51,050–51,240, while resistance is at Rs51,620–51,780. Silver has support at Rs 54,350-53,640, while resistance is at Rs 55,680–56,010.
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