Gold prices in India were flat, while silver prices edged up, tracking similar global cues. Gold futures on MCX touched a one-month low with a slight fall 50,421 per 10 grams while silver futures rose 0.7% 53,778 per kg. In global markets, the yellow metal was flat at $1,712.09 an ounce, under pressure against a firmer US dollar. The focus of gold traders will be on the meeting of the European Central Bank to be held on Thursday. Spot silver rose 0.9% to $18.32 an ounce in global markets.
Analysts expect the ECB to hike interest rates by 75 basis points to check rising prices. Traders also expect major interest rate hikes from the US Federal Reserve in its September 20-21 policy meeting.
“comex” Sleep Higher tradeoffs come amid a fall in the US dollar and bond yields on mixed US jobs reports and the situation ahead of central bank decisions in Australia and the European Central Bank. “Supporting gold and other commodities is China’s willingness to take additional measures to support economic activity and renew energy concerns relating to Europe,” said Ravindra Rao, VP-Head Commodity Research, Kotak Securities.
“ETF inflows however show weak investor interest. Gold’s sharp decline has made it vulnerable to short covering and we may see some extended gains as market focus shifts from the Fed to other central banks as it moves towards the US dollar. can keep it unsettled.”
The dollar index remained close to its recent peak. The strengthening of the dollar has made gold costlier for foreign buyers.
Gold Technical Outlook
“Gold and Silver Traded in a tight range and held above key $1,700 and $18.00 levels, hopes the Federal Reserve may slow the pace of rate hikes following mixed US jobs data last week that offset pressure from a rising dollar. helped to do. The dollar index rose to a new 20-year high and the euro hit a new two-decade low against the dollar after Russia halted gas supplies to the European Union. OPEC+ countries’ decision to cut oil production in their meeting also supported gold prices,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
“Gold has support at $1718-1706, while resistance is at $1742-1755. Silver has support at $17.85-17.68, while resistance is at $18.48-18.55. Gold has support in rupee terms. 50,250–49,940, while resistance is at 50,680–50,840. Silver has support at Rs 52,750-52,320, while it is at resistance. 53,980-54,410.”
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