gold price On Monday, a sharp decline was seen in the lower level index of the US dollar in India. The yellow metal has been under pressure since last week. Prices tumbled on Monday, after US Federal Reserve Chairman Jerome Powell indicated that the US central bank plans to cut its asset purchases later this year. On the Multi Commodity Exchange (MCX), the gold contract in October declined by 0.20 per cent to Rs 47,441 per 10 grams at 0930 hrs on August 30. Silver prices remained flat on Monday. The price of the precious metal rose 0.02 per cent to Rs 64,050 on August 30.
After the US Federal Reserve in the international market, the price of gold reached a nearly four-week high on Monday. Spot gold was steady at $1,814.86 an ounce as of 0312 GMT, hitting its highest since August 4 at $1,820.50. US gold futures GCv1 fell 0.1 percent to $1,817, according to Reuters. Lower US interest rates put pressure on the dollar and bond yields. After the US Fed Chief’s remarks at Jackson Hole, the dollar index fell to a two-week low against its rivals. This made safe-haven assets less expensive for holders of other currencies.
Federal Reserve Chairman Jerome Powell also indicated that he still considers the increase in inflation to be temporary and gave no indication that the central bank plans to cut its asset purchases, going beyond saying that It could happen this year. Also, rising cases of coronavirus may raise hopes that the US Federal Reserve may delay economic support and lend support to gold. Slightly weaker US trading activity in August also rallied. Fed Chair Jerome Powell’s tumultuous speech could push prices higher next week,” said Sriram Iyer, senior research analyst at Reliance Securities, for your reference.
“On the domestic front, MCX has crossed a crucial Rs 47,500 level in October which may push the prices towards resistance at Rs. 47800 and Rs 48,000 and a break above both the resistances will push the price towards Rs 48,300 levels. On the other hand, a break below Rs 47,500 may move back towards the support levels of Rs 47,250, Rs 47,000 and Rs 46,750.
“Gold and Silver are showing strength in the daily chart and Momentum indicator RSI is creating a strong positive divergence in Silver on the daily as well as on the four-hour chart, any downside is an opportunity to create fresh long positions in Bullion, Bullion Fundamentals also in support of the.Therefore traders are advised to create fresh buy positions in Gold and Silver near the given support levels, traders should also take note of the below mentioned important technical levels for the day: Aug. Gold closing price Rs 47,538, Support 1 – Rs 47,100, Support 2 – Rs 46,700, Resistance 1 – Rs 47,750, Resistance 2 – 48,000 September Silver closing price Rs 64,063, Support 1 – 63,100, Support 2 – Rs 62,500, Resistance 1 – Rs 65,000, resistance Rs 2 – 66,000,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodities Ltd.
The precious metal posted immediate gains and a breakout above $1800/ounce after the Fed chairman seemed more cautious than other Fed officials on the tapering, noting that the central bank would spend $120 billion in monthly bond purchases this year. Powell’s remarks led to some selling in the US Dollar which has been positive for gold. Gold prices have also gained momentum in the Indian markets, where SAFE has closed above Rs 47,500. Near Duration outlook is expected to be positive as Powell’s remarks breathe new life into the precious metals market. Key Levels for Gold August Contract – Rs 47,313. Buy Zone Above – Rs 47,320 with a target of Rs 47,807-48,000. Sell below zone – Rs 47,300 with a target of Rs 47,050-46,800,” said Sandeep Matta, Founder, TRADEIT Investment Advisors.
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