Gold prices in India eased on August 27, tracking a muted trend in the international spot prices as investors waited for Federal Reserve Chairman Jerome Powell's address an important annual conference later in the day.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading lower by 0.13 percent at Rs 51,710 per 10 gram at 0920 hours. September silver futures were trading at Rs 66,975 per kg, down 0.8 percent.
The dollar index fell to a near one-week low against its rivals, making gold less expensive for holders of other currencies.
Experts are of the view that gold and silver will likely remain volatile but strong support for the yellow metal is placed at Rs 51,000.
Gold and silver prices showed extreme volatility on August 26. Gold gained 1.77 percent and settled at $1957.05 per troy ounce and silver gained 4.53 percent to end at $27.46 per troy ounce.
On MCX, gold gained around 2 percent to settle at 51,800 levels, silver was up 5.50 percent at around 67,500 levels.
“Ahead of US federal reserve chairman speech today, both the precious metals will remain volatile. Gold has support at $1,933 per troy ounce and resistance at $1,972-1,984 per troy ounce. On MCX, gold has support at 51,000 levels on a closing basis and resistance at 51,800-52,220 levels,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
Silver has support at $26.90 per troy ounce on a closing basis and resistance at $27.80-28.20. On MCX, silver support is at Rs 66,200 on a closing basis and resistance at Rs 68,500-69,200, he said.
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Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver rose on August 26 as the dollar fell ahead of a Powell's speech and as investors bet on further stimulus to mitigate the impact of the coronavirus pandemic.
Powell is set to speak at a virtual Jackson Hole symposium, where he is expected to offer more insight into the US central bank's strategy on inflation and monetary policy.
Domestic bullion could trade in a range on August 27, tracking a weak start in the overseas prices.
Technically, MCX October gold traded in the Rs 50,551-51876 range. The metal can continue to witness bullish momentum above 51,500. Resistance holds at the 51,900-52,200 level and support is at 50,500-50,300.Disclaimer
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