Gold and silver prices today: Daily charts attractive for yellow metal and silver, signal upside

Gold prices opened on the Multi Commodity Exchange (MCX) on Monday at Rs 58,761 per 10 grams and hit an intraday low of Rs 58,685. In the international market, prices hovered around $1,915.3 per troy ounce. Meanwhile, Silver opened at Rs 73,668 per kg and hit an intraday low of Rs 73,522 on the MCX. The price hovered around $24.19 per troy ounce in the international market.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices were flat as Federal Reserve Chair Jerome Powell’s hawkish commentary doused expectations that the US rate-hiking cycle was nearing an end, with investors awaiting economic data this week for confirmation on rate trajectory.”

All expectations that the 2 per cent inflation goal long sought by the US Fed and the ECB might possibly be in for a tweaking were dashed by the chiefs of the two institutions at the Jackson Hole symposium.

Governor Powell left open the possibility of further rate increases and stressed the U.S. economy's surprising strength, though he acknowledged declines in the pace of inflation over the past year.

“Interestingly, even after comments from governors of major central bankers where rate hike expectations have been increased, the CME Fed-Watch tool continues to show more than 80 per cent probability for a pause in the September Fed meeting. This week will be important, as important data points like US GDP, PCE, manufacturing PMI and jobs report are expected on the economic calendar, which could further drive the gold and silver prices,” said Modi.

MCX Gold prices did not close on a very positive note in the last session. Gold prices are trading sideways to negative after the previous week's Fed's hawkish comment. It stated that they would take all the necessary measures to contain the high inflation and that two per cent is and will remain our inflation Target.

Deveya Gaglani, Research Analyst - Commodities, Axis Securities, said, “A rate hike is possible, which may dent bullion sentiments going forward. The dollar index also rallied above the $104 level, which is not favourable for Bullion prices as it is inversely correlated. All in all, prices have been in a tight range between 58200 and 59000 for the past few days, and we expect it to trade in the mentioned range. On the daily chart, prices are trading below 20, and 60 EMA, and RSI is also nearing the 40 levels, indicating that price momentum is weak. Sell on rise is recommended in Gold as long as the 59000 level is intact on the upside.”

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Amit Khare, Associate Vice President at GCL Broking, said, “October Gold closed at 58640 (-0.29 per cent) and September Silver closed at 73549(-0.02 per cent), Bullions daily charts are looking attractive. We can see good upside movement in the near future. Momentum Indicator RSI also indicates the same, So traders are advised to make fresh buy positions in Gold and Silver near given support level one with the stop loss of support level two and book near given resistance levels: Gold October Support 58500/58200 and Resistance 59000/59200. Silver September Support 73200/72400 and Resistance 74200/75000.”