Gold prices slip by Rs 200 to trade at Rs 99,235/10g ahead of Jerome Powell’s speech. Should you buy the dip?
Gold October futures on MCX traded lower by Rs 200, or 0.2%, at Rs 99,235 per 10 grams on Friday, ahead of U.S. Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium, which market participants expect could shape expectations for future monetary policy.
Silver September contracts mirrored the sentiment, trading at Rs 1,13,515 per kg, down Rs 191 or 0.17%.
On Thursday, gold and silver had settled on a positive note in the domestic market and mixed in international markets. Gold October futures closed at Rs 99,435 per 10 grams, up 0.13%, while silver September futures settled at Rs 1,13,706 per kg, gaining 1.02%.
Both metals showed high price volatility ahead of Powell’s speech. Prices recovered from the day’s lows after U.S. jobless claims surged last week to 2,35,000, compared with expectations of 2,26,000.
“The market is eyeing the Fed Chairman’s speech for more clarity on monetary policy easing. The dollar index and U.S. 10-year bond yields are trading steady with a positive bias, limiting gains in gold and silver,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
The U.S. Dollar Index (DXY) hovered near 98.76, up 0.14 points or 0.15%.Geopolitical optimism over a possible Russia-Ukraine peace agreement faded after reports of Russia’s biggest drone and missile attack on Ukraine in over a month. Moscow accused Kyiv of rejecting the prospect of a “lasting and fair settlement,” said Renisha Chainani, Head of Research at Augmont.“The overall tone remains positive, with both metals set for a second straight week of gains amid heightened trade uncertainty and expectations of a softer Fed approach,” added Rahul Kalantri, VP Commodities at Mehta Equities.
Trading strategy (MCX):
- Gold support: Rs 99,100–98,650; resistance: Rs 99,720–1,00,100
- Silver support: Rs 1,13,000–1,12,200; resistance: Rs 1,14,400–1,15,115
Jain suggests buying gold on dips near Rs 99,100 with a stop loss at Rs 98,660 and a target of Rs 99,700.
Chainani noted that gold could extend its downward trajectory if it sustains below $3,400. The next support lies at $3,340 (~Rs 98,500), with resistance at $3,445 (~Rs 1,00,500).
Silver prices are expected to consolidate in the $37 (~Rs 1,10,500) to $39 (~Rs 1,15,000) range, with a strategy of buying on dips and selling on rallies.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 58,128/8 grams while pure gold (24 carat) prices stand at Rs 62,024/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,096/8 grams while pure gold (24 carat) prices stand at Rs 60,928/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,800/8 grams while pure gold (24 carat) prices stand at Rs 60,552/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 60,552/8 grams while pure gold (24 carat) prices stand at Rs 60,592/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)