Gold prices rose to Rs 51,399 per 10 gram on August 28 on short-covering of positions by participants as seen by the open interest. The precious metal recouped all the losses of Thursday after US Federal Reserve Chairman Jerome Powell signalled to tolerate higher inflation above 2 percent.
The bullion metal fell Rs 617, or 1.18 percent for the week on MCX.
The US dollar index, measured against a basket of six currencies fell 0.76 percent to 92.28.
Gold holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund were at 1,251.50 tonnes.
US initial jobless claims remained above a million last week. Unemployment benefits fell 98,000 to a seasonally adjusted 1.006 million, against a market forecast of 1.0 million, for the week ended August 22.
US second-quarter GDP dropped to -31.7 percent (q/q annualized), which was revised down from the -32.9 percent initial estimate of the damage.
Abhishek Bansal, Founder Chairman, Abans Group said, “Gold found some support from Fed chairman Powell’s comment that the FOMC would target inflation to be above the 2 percent level. An immediate support is seen around the 50-day EMA at $1,908, and the 100-day EMA at $1,832; meanwhile key resistance levels could be seen around $1,975, and $2,020.”
In the futures market, gold for October delivery touched an intraday high of Rs 51,750 and a low of Rs 50,890 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 45,596 and a high of Rs 56,191.
Gold delivery for October contract gained Rs 497, or 0.98 percent, to settle at Rs 51,399 per kg with a business turnover of 14,860 lots. The same for the December contract edged higher Rs 561, or 1.10 percent, to Rs 51,715 per kg with a turnover of 4,291 lots.
The value of October and December's contracts traded during the day was Rs 8,351.98 crore and Rs 606.96 crore, respectively.
The spot gold/silver ratio currently stands at 71.46 to 1, which means the amount of silver required to buy one ounce of gold.
Similarly, Gold Mini contract for September jumped Rs 467, or 0.92 percent at Rs 50,974 on a business turnover of 6,205 lots.
Spot gold settled with a gain of $34.71 at $1,964.39 an ounce on Friday in London trading.For all commodities related news, click here