Gold price trading flat; silver rate at Rs 68,500

Gold, Silver prices in India on September 3: Gold price reversed from losses and held steady on Thursday amid a mild recovery in global markets. Traders said investors were anticipating outcome from key economic data for further direction. Yesterday, prices of gold and silver fell as solid economic data in the US helped to lift the dollar.

On the Multi-Commodity Exchange platform, commodities showed a muted move today. MCX precious metals were trading tad higher, tracking a similar move from international commodity markets.

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Gold October Futures gained Rs 6 at Rs 50,827, after hitting an intraday high of Rs 50,964 against the previous close of Rs 50,821 per 10 gm. MCX gold futures currently trade almost Rs 5,370 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 life-time high since the beginning of the year.

On a similar note, Silver September Futures gained Rs 30 at Rs 68,284 per kg today after they touched an intraday high of Rs 68,855 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.

In the international spot market, gold and silver cut down some of their morning losses and turned positive. Spot gold was up 0.2% at $1,945 per ounce, after 1.4% fall yesterday.

Gold price slips after 3 days; silver rates at Rs 69,600

While Comex gold was rising 0.15% at $1,937 per ounce, US gold futures gained 0.4% to $1,952. Silver gained 0.1% to $27.52 per ounce. Overseas, gold has gained over 28% this year.

A weak momentum in the equity market and rising coronavirus cases also helped the commodity cap losses. Worldwide, there were 261 lakh confirmed cases and 8.67 lakh deaths from COVID-19 outbreak. Meanwhile, India's death toll from COVID-19 infections rose to 67,486 and total coronavirus cases to 38.53 lakh as of Thursday.

Gold price turned volatile in the recent trades after a strong come back in manufacturing activities in major economies underpinned that world economy was finding its momentum despite several other weak signals.

Dollar index steadied against the basket of six Asian currencies today. This was after a gain of 0.6% in the last session, backed by robust US manufacturing sector, giving hopes of an economic recovery.

In India, 24-carat bullion per 10 gram in the national capital traded at Rs 50,010. Price of 24-carat gold stood at Rs 53,640 per 10 gram in Chennai. In Mumbai and Kolkata, the rate for 24-Carat gold stood at Rs 50,550 and 52,840, respectively.

Gold prices may fall below Rs 50,000 in coming days; should you buy or wait?

Technical outlook

Geojit Financial Services in its note said, "Expect weak bias to continue as long as $1974 caps upside for the day. However, mild support is seen at 1920, which needs to be cleared for the continuation of liquidation pres-sure. An unexpected rise above $2000 is a signal of renewed buying pressure." For MCX Gold Oct futures, the brokerage said resistance is placed at Rs 51850 and support at Rs 50520.

On Silver, the agency said," Expect a choppy with directionless trading initially. A direct rise above $29 is required to continue the further update. Strong support is seen at $27 break of which is a signal of selling pressure."

MCX Silver Nov futures resistance is placed at Rs 70820 and support at Rs 64300.

Anuj Gupta, DVP, Commodities and currency, Angel Broking," The US Dollar recovered as US factory activities strengthened in August'20 which might weigh on the gold prices. As of today, traders can go for sell in gold at Rs 51,700 levels with the stop loss of Rs 52,150 levels for the target of 51,000 levels. They can also go for sell in Silver  at Rs 71,000 levels, with the stop loss of 72,500 levels and for the target of 67,000 levels. In the Bullion index 'Bulldex' traders can also go for sell at 16300 with the stop loss of 16550 and for the target of 16000."

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