Gold, Silver prices in India on August 27: Gold price in India reversed trend after two sessions of marginal gains. The fall in prices came in line with global markets as investors awaited US central bank speech from Federal Reserve Chairman Jerome Powell, scheduled today.
Investors awaited with caution on US Fed Chairman Jerome Powell's view on monetary policy and the economic condition. Fed Chairman Jerome Powell will speak on Thursday during a virtual version of the Fed's annual Jackson Hole, Wyoming, conference. Powell is expected to outline what could be the central bank's most active efforts ever to spur inflation back to a healthy level.
Globally, rising coronavirus cases helped the commodity to cap losses. 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 October Futures traded tad lower, by Rs 28 at Rs 51,751, after hitting an intraday low of Rs 51,596 against the previous close of Rs 51,779 per 10 gm. MCX gold futures currently trade almost Rs 4,595 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 a similar note, Silver September Futures were trading Rs 226 lower at Rs 67,303 per kg today after they touched an intraday low of Rs 66,666 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.
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Global markets
Overseas, precious metals were trading lower on Thursday, following a sharp rise in the previous session. Gold and silver prices turned bearish, ahead of Powell's speech as investors expected more stimulus to support economic downturn caused by the pandemic. Gold Spot price in the international market still held above $1900 an ounce, while silver in the same platform traded moderately.
The dollar index, also fell 0.2% to a near one-week low against a basket of major currencies, giving some repite to the precious metal.
In the international spot market, spot gold fell 0.6% to $1,941.43 per ounce, after rising 1.3% yesterday. While Comex gold was flat at $1,940 per ounce, US gold futures eased 0.2% to $1,949.50. Silver dropped 1.9% to $27.01 per ounce.
Retail gold rate in India
24-carat gold prices in the national capital traded at Rs 54,390 per 10 gram. Price of 24-carat gold stood at Rs 53,760 per 10 gram in Chennai. In Mumbai, the rate for 24-Carat gold stood at Rs 51,410 as per Good Returns website.
Valuation
As per Geojit Financial Services, recovery upticks will continue only if prices can stabilize above $1962. Else, intraday mo-mentum will be on the downside with stiff support is seen at $1880-1900 regions. A direct drop below $1880 is a signal of weakness.
For MCX Gold August, resistance is placed at 52,320 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, Hareesh V Geojit's head of commodity research said, "Gold will continue to trade clueless ahead of the key US central bank speech scheduled today. However, optimism of COVID vaccine, gaining equities and a steady US dollar will continue to put downside pressure on the commodity. Anyhow, the major weakness is unlikely due to increased safe-haven demand of the metal."
On London spot technical outlook, he added," Immediate resistance of $1962 needs to be cleared to continue further upticks towards $2000 or more. Else, there will be a likely corrective selling but major support is seen at $1900."
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