Gold, Silver prices in India on August 26: Gold price continued to rise for the second straight session on Wednesday as rising coronavirus cases globally helped the commodity recover from recent losses. Although, US-China trade talks showing progress dented yellow metal's shine. Gold rates globally saw sharp volatility in the last few sessions as dollar index held firm near a one-week high hit last week, making gold more expensive for holders of other currencies.
In India, the death toll touched 59,612 and total coronavirus cases reached 32.34 lakh as of Tuesday. Worldwide, there were 240 lakh confirmed cases and 8.23 lakh deaths from COVID-19 outbreak.
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MCX
On the Multi-Commodity Exchange, gold September Futures traded 0.31% or Rs 156 higher at Rs 51,080, after hitting an intraday high of Rs 51,184 against the previous close of Rs 51,165 per 10 gm. MCX gold futures currently trade almost Rs 5,026 lower than the lifetime high of Rs 56,191 per 10 gm, hit on August 7.
On MCX, the yellow metal has risen 41.5% to the life-time high since the beginning of the year amid concerns over rising coronavirus cases around the globe. Bullion that was trading at Rs 39,000 on December 31, 2019, recently hit a lifetime high of Rs 56,191 per 10 gm on August 7, 2020.
On the contrary, Silver September futures were trading Rs 240 lower at Rs 63,765 per kg today after they touched an intraday low of Rs 63,652 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.
Global markets
Precious metals were mostly unchanged overseas. While rising COVID-19 cases led investors to the safe-haven asset, gains were offset driven by signs of progress in US-China trade negotiations. Top US and Chinese officials reportedly reaffirmed their commitment to a trade deal that had appeared on shaky ground because of worsening bilateral ties following weeks of escalating tensions between the world's two largest economies.
The dollar index also held steady against a basket of major currencies, as investors awaited US central bank speech from Federal Reserve Chairman Jerome Powell, scheduled on Thursday.
In the international spot market, spot gold was steady at $1.930.80 an ounce, after the recent volatility. Comex gold was flat at $1,911.80 per ounce, while US gold futures rose 0.5% to $1,933.60. Silver was steady at $26.43 per ounce.
Choppy equities amid concerns of a weak global economic outlook due to rising COVID cases also helped commodities recover from the recent fall last week.
Retail gold rate in India
24-carat gold prices in the national capital traded at Rs 54,880 per 10 gram. Price of 24-carat gold stood at Rs 54,880 per 10 gram in Chennai. In Mumbai, the rate for 24-Carat gold stood at Rs 54,060 as per Good Returns website.
Gold price gains on weak dollar; silver rates at Rs 65,500
Valuation
As per Geojit Financial Services, the immediate support range of $1880-1900 levels seems to be hold and hence expect a recovery uptick for the day. However, it needs to close above $1960 to strengthen the momentum. A direct drop below $1880 is a signal of weakness.
For MCX Gold August, resistance is placed at 51,580 and support is at 49,960. For MCX Silver August futures, the resistance is at 69,150 and the support is placed at 66,150.
Commenting on gold's near term technical indicators, Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking said," As of today, traders can go for sell in gold at Rs 51,400 levels with the stop loss of Rs 51,950 levels for the target of 50,600 levels. They can also go for sell in Silver at Rs 65,200 levels, with the stop loss of 66,800 levels and for the target of 63,000 levels. Traders can use sell on rise strategy in Gold and Silver. In the Bullion index Bulldex traders can also go for sell at 16050 with the stop loss of 16150 and for the target of 15880."
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