Gold remains flat at Rs 74,150/10g for 2nd day; silver rises Rs 200

Gold traded flat at Rs 74,150 per 10 grams for the second day in a row in the national capital on Thursday, according to the All India Sarafa Association. However, silver prices firmed up Rs 200 to Rs 87,200 per kg against Rs 87,000 per kg in the previous close on Wednesday.

Gold of 99.5 per cent purity also remained flat at Rs 73,800 per 10 grams for the second day.

Internationally, Comex gold traded at USD 2,537.80 per ounce, down by USD 9.70 while silver quoted marginally down at USD 29.94 per ounce in the global markets.

Bullion market traders seem cautious ahead of US Federal Reserve Jerome Powell’s speech at the Jackson Hole symposium, experts said.

Even Federal Open Market Committee (FOMC) meeting minutes released on Wednesday have influenced the purchasing pattern among traders. The FOMC meeting minutes said that the recent progress on inflation and surge in unemployment is providing room for 25 basis point rate cuts in the next policy meeting. Gold and silver traded steadily and settled on a mixed note as the majority of Fed members agreed to cut interest rates in the next policy meeting, Rahul Kalantri, Vice President of Mehta Equities, said. However, “some officials are still in the wait and watch approach, moving according to the economic data points,” Manav Modi, Senior Analyst – Commodity Research at MOFSL, said.

Looking forward, traders will focus on preliminary manufacturing and services PMI from major economies and US weekly jobless claims data.

According to Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies at Angel One Ltd, gold is likely to trade higher as anticipation builds for Fed Chair Jerome Powell’s speech at the Jackson Hole symposium on Friday amidst a weaker dollar and lower bond yields.

“The hope is he will offer clues about how deeply and quickly the Fed will begin cutting interest rates in September after it jacked them to a two-decade high to beat inflation,” Mallya said.