Gold held steady on August 24 in the international markets, with gains checked by an uptick in the US dollar, as market participants looked forward to a speech from Federal Reserve Chair Jerome Powell later this week. Spot gold was little changed at $1,746.60 per ounce, as of 0126 GMT, after rising 0.7% in the previous session.
At 9.44am, gold contracts were trading 0.11 percent lower on the Multi-Commodity Exchange (MCX) at Rs 51,360 per 10 grams and silver shed 0.33 percent at Rs 55,025 a kilogram.
Trading Strategy
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades marginally lower near $1757/oz weighed down by stable US dollar and bond yields as market players counter hawkish comments from Fed officials against disappointing US economic data. Gold is also pressurized by continuing ETF outflows and concerns about consumer demand. However, supporting price is growth worries amid slower economic activity and power crisis in Europe and China and increased geopolitical tensions. Gold has retreated from recent highs but is consolidating near $1750/oz as market players position for Fed Chairman’s comments at the Jackson Hole Symposium. We may see choppy trade in the near term but general bias still remains weak owing to Fed’s emphasis on continuing rate hikes.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver recovered from their lows amid profit taking in the dollar index and gains in crude oil. Both precious metals settled on a positive note in the international markets. Gold December futures contract settled at $1761.20 per troy ounce with a gain of 0.73% and silver September futures contract settled at $19.03 per troy ounce with a gain of 0.78%. Both precious metals also settled on a positive note in the domestic markets.
We expect gold to test $1772 per troy ounce levels. Gold has support at $1750-1734 per troy ounce and resistance at $1772-1784 per troy ounce while silver has support at $18.84-18.60 per troy ounce and resistance at $19.20-19.45 per troy ounce.
At MCX, gold has support at Rs 51220-51050 and resistance at Rs 51550-51720 while silver has support at Rs 54800-54450 and resistance at Rs 55500-55900. We suggest buying gold on dips around Rs 51200 with a stop loss of Rs 51050 on a closing basis for target of Rs 51650.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
Gold prices traded steady on Wednesday with spot gold prices at COMEX were trading near $1745 per ounce in the morning trade. Gold prices recovered on weaker dollar following disappointed US data and ease in US bond yields.
We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1730 and resistance at $1760 per ounce. MCX Gold October support lies at Rs. 51100 and resistance at Rs. 51700 per 10 grams.
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