Gold price today: Yellow metal gains; next target placed at 53,600-53,700 levels  

Gold was trading higher in India on August 18, tracking positive trend in the international spot prices largely on the back of a weak dollar.

On the Multi-Commodity Exchange (MCX), October gold contracts were trading higher by 0.33 percent at Rs 53,449 per 10 gram at 0920 hours. September silver futures were trading at Rs 70,029 per kg, up 1.2 percent.

Spot gold edged to trade at $1,987.51 per ounce. The dollar was down, and trading at an over one-week low, making gold cheaper for those holding other currencies, said a Reuters report.

Investors were waiting for the minutes from the US Federal Reserve’s last policy meeting due for release on August 19, it said.

As long as gold trades above Rs 53,300 per 10 gm, the upmove could extend towards 53,600-53,700 levels, experts say . Both the precious metals may remain volatile and fresh buying is suggested only on breakout of given levels.

Gold and silver prices gained on August 17 amid weakness in the dollar index and US 10-year bond yields. Gold gained around 2.5 percent and settled at $1,998.70 per troy ounce, Silver rocketed again to gain around 6 percent to settle at $27.67 per troy ounce.

On MCX, gold settled at Rs 53,260 with gains of 1.98 percent while silver gained 2.59 percent at Rs 68,912.

“Gold test $2,000 per troy ounce mark again at Comex division amid the weakness in the dollar index and US 10-year bond yields. The dollar index slipped below 93-mark and bond yields plunged around 5 percent, supporting both the precious metals,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“Both the precious metals remain volatile ahead of US Federal Reserve meeting minutes (release) and weakness in the dollar index, fear of lower economic growth and surge in coronavirus cases could support prices,” he said.

Jain added that at MCX, support for gold was placed at 52,550 on a closing basis, and if prices sustained above 53,330, the rally could extend towards 53,600-53,770.

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Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

On August 17, international spot and Comex futures gold and silver rose supported by a falling dollar and weak US treasury yields. Poor economic data also supported prices after the New York Fed's Empire State Manufacturing Survey index dropped to 3.7.

Domestic bullion could trade firms on August 18, tracking firm overseas prices. Technically, MCX October gold was trading in the 52,113-53,443 range where it ended with more than 2 percent gains, however, upside movement will continue above 53,000.

Volatility can keep prices in the 52,700-53,800 range. Resistance holds at 53,700-54,200 and support is at 52,900-52,750 levels.

Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

Comex gold was trading higher near $2,000/oz after 2.5 percent gain the previous day. A weak dollar, mixed US economic data, retreat in US bond yields, ETF inflows, increased US-China tensions and rising virus cases supported the price.

Gold has rescaled the key $2,000/oz level and we may see some extended gains, however, sustenance above $2,000/oz would be a key.

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