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Gold price today: Yellow metal holds Rs 51000; support seen at Rs 50,500-50,300

Experts are of the view that the yellow metal is likely to remain volatile with support seen at Rs 50,300-50,500.

August 28, 2020 / 10:07 AM IST

India gold futures rose higher on August 28 after falling by about 2 percent in the previous trading session tracking volatility in the international spot prices. Experts are of the view that the yellow metal is likely to remain volatile with support seen at Rs 50,300-50,500.

International gold prices steadied on Friday as worries over an economic slump caused by the COVID-19 pandemic countered pressure from a jump in US Treasury yields on Federal Reserve Chair Jerome Powell’s offer for more inflation tolerance, said a Reuters report.

Spot gold rose to $1,929.94 per ounce, after falling more than 1.2 percent on Thursday. Gold has fallen more than 0.5 percent so far this week, it said.

On the Multi-Commodity Exchange (MCX), October gold contracts were trading higher by 0.3 percent at Rs 51,080 per 10 gram at 09:20 hours. September silver futures were trading at Rs 65,729 per kg, up 0.8 percent.

Close

On expected lines, both the precious metals show extreme volatility on Thursday ahead of Fed chairman speech at Jackson Hole. Gold and silver gained during his speech but Federal Reserve new stance on dealing with inflation and focus on jobs support dollar index.

Dollar index rebounded from their lows and pushed both the precious metals lower. Gold slipped around 1.5 percent and settled at $1,932.60 per troy ounce, silver also slipped around 2 percent and settled at $27.03 per troy ounce at Comex division.

At MCX, gold slipped around 2 percent and settled around 50850 and Silver slipped around 4 percent and settled around 65000 levels.

“Despite a rising dollar index, US unemployment claims data support precious metals at lower levels. Unemployment claims are still at 1 million and quarterly GDP numbers are also showing that the economy is in deep trouble. We expect both the precious metals remain volatile and could get support at lower levels,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“Gold is having support at $1,910 on a closing basis and resistance at $1,944-1,958 per troy ounce. At MCX, gold is having support at Rs 50,330 on a closing basis and resistance at Rs 51,200-51,500 levels,” he said.

Track live gold price here

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Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities


International gold and silver have started flat to higher this Friday morning in Asian trade.

Technically, LBMA GOLD Spot has started flat and could remain range-bound. However, it is trading below $1,940 levels which signifies Bearish momentum to continue below this level. Resistance is at $1,939-$1,950 levels. Support is placed at $1,919-$1,910 levels.

Domestic gold and silver tumbled on Thursday, tracking weak overseas prices. Index futures also ended with solid losses tracking weak gold and silver futures.

Domestic bullion could start flat to higher this Friday morning, tracking a slightly positive start in the overseas prices.

Technically, MCX Gold October ended with more than 1.5 percent losses and a close below Rs 50,500 levels will continue downside movement. Resistance holds at Rs 51,900-52,100 level and Support is at Rs 50,500-50,300 levels.

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

COMEX gold trades 0.4 percent higher near $1943/oz after a 1 percent decline yesterday. Gold is choppy along with the US dollar as market players are assessing the Fed’s new inflation strategy.

ETF outflows show weaker investor interest while supporting price is mixed economic readings, rising virus cases, and US-China tensions.

Gold may remain choppy above $1,900/oz level amid lack of clear cues however general bias may be on the upside owing to the Fed's dovish stance and increasing challenges to the global economy.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Kshitij Anand is the Editor Markets at Moneycontrol.
first published: Aug 28, 2020 10:07 am

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