Gold price likely to continue downward trajectory after Rs 1,200 fall in a week. Check target prices
Gold October futures prices at MCX on Thursday were trading lower at Rs 99,000/10 grams, falling by Rs 304 or 0.31%. This fall takes the total decline in the yellow metal prices to Rs 1,200 in just one week.
Meanwhile, silver September contracts were trading flat with a negative bias at Rs 1,12,506/kg, slightly down by Rs 47 or 0.04%.
On Wednesday, gold and silver settled on a positive note in the domestic and international markets. Gold October futures contract settled at Rs 99,304 per 10 grams with a gain of 0.62% and silver September futures contract settled at Rs 1,12,553 per kilogram with a gain of 1.08%.
Gold and silver showed very high volatility and recovered from their lows amid short covering ahead of the Fed Chairman’s speech at the Jackson Hole Symposium later this week.
The minutes showed that policymakers remain concerned about the labour market and inflation, with the majority believing it is still too early to aggressively cut interest rates. Gold prices hovered around $3,400, reflecting the cautious sentiment.
“Traders have now largely priced in an 85% probability of a rate cut in September, though the Fed’s guarded tone has tempered expectations for deeper rate cuts through the rest of the year. While a September cut is seen as almost certain, the path beyond remains less clear,” says Renisha Chainani, Head – Research at Augmont.The FOMC meeting minutes show a cautious view on the monetary policy easing and show concerns about higher inflation and lower job markets due to U.S. trade tariffs. Some of the committee members advocate for September rate cuts,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.The US Dollar Index, DXY, was hovering near the 98.39 mark, gaining 0.17 or 0.18% on Thursday.“The Fed Chairman’s speech could be directional for the markets,” he believes.
Investor attention is now turning to Fed Chair Jerome Powell’s speech at the annual central bank symposium in Jackson Hole, Wyoming, on Friday. Markets are expected to parse his remarks for further cues on the Fed’s monetary policy trajectory.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 99,000-98,650 and resistance at Rs 99,720-1,00,100
- Silver has support at Rs 1,11,800-1,11,100 and resistance at Rs 1,13,300-1,14,000
Jain suggests buying silver on dips in the range of Rs 1,11,800-1,11,200 with a stop loss of Rs 1,10,450 for a target of Rs 1,13,300-1,14,000.
Meanwhile, Renisha Chainani states that gold seems to continue its downward trajectory after sustaining below $3400. Next support is $3340 (~Rs 98,500), while $3445 (~Rs 1,00,500) remains the resistance.
Further, silver prices are expected to consolidate in a range of $37(~Rs 1,10,500) to $39(~Rs 1,15,000).
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,816/8 grams while pure gold (24 carat) prices stand at Rs 61,656/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,088/8 grams while pure gold (24 carat) prices stand at Rs 60,808/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,752/8 grams, while pure gold (24 carat) prices stand at Rs 60,448/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 57,008/8 grams while pure gold (24 carat) prices stand at Rs 60,728/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)