Gold price in India jumped on Thursday tracking the global peers. On the Multi-Commodity Exchange (MCX), August gold contracts surged 1.01 per cent to Rs 47,057 for 10 grams at 1600 hours. Silver saw a massive hike on July 29. The precious metal increased 2.03 per cent to Rs 67,740 on Thursday.
In the international market, gold prices rose to its highest level in over a week on Thursday. The surge came after US Federal Reserve had failed to give a timeline for its tapering plans. Spot gold rose 0.5% to $1,815.56 per ounce by 0129 GMT, having earlier hit a peak since July 20 at $1,817.35. US gold futures climbed 0.9% to $1,815.30 per ounce, said Reuters. US Fed chief Jerome Powell said the US job market still had “some ground to cover” before it would be time to pull back. Fed’s policy statement weighed on the dollar index, which hit a two-week low on Wednesday.
“Gold price edged higher, as the latest insistence from Fed Governor Powell that rate increases aren’t on the radar, put pressure on the dollar and support the safe haven asset. US central bank acknowledged to the fact about eventual withdrawal of pandemic-era monetary policy support, although Governor Powell mentioned that the US job market still had ‘some ground to cover’ before it would be time to pull back,” said Navneet Damani, VP – commodities research, Motilal Oswal Financial Services.
“Today market participants will keep an eye on the US Q2 GDP data scheduled later in the day. Overall till $1770 hold for gold on the CoMex, gold has a chance to run up back to 1840 and 1870. On the domestic front Rs 47,200 could be a base and rallies could take gold to over Rs 49,000 over the next few weeks,” he further added.
“The just-released data point of the week, the Federal Reserve’s Open Market Committee (FOMC) statement, showed the US central bank kept its monetary policy unchanged, as expected. The Fed said the U.S. economy continues to strengthen and that inflationary pressures are still transitory. Based upon markets’ reactions the FOMC statement might be deemed just a bit less dovish than expected. US Treasury bond and note yields rose, while the US dollar index rallied after the statement. Traders are now awaiting a press conference from Fed Chair Jay Powell. A number of market watchers are still concerned about slowing economic growth and rising inflation, what many call stagflation. August gold futures were last down $5.70 at $1,794.10 and September Comex silver was last up $0.106 at $24.75 an ounce. Technically, gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at the July high of $1,835.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at the overnight high of $1,807.60 and then at this week’s high of $1,812.00. First support is seen at last week’s low of $1,789.10 and then at $1,780.00,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.
“Gold and silver are trading near oversold zone as per hourly chart and giving positive signal on the daily chart, momentum indicator RSI also indicating the same. Silver is looking more strong than Gold in daily chart and creating a positive divergence in daily chart, So traders are advise create long position in Gold and Silver, traders should also focus important technical levels given below for the day: August gold closing price Rs 47,577, Support 1 – Rs 47450, Support 2 – Rs 47,300, Resistance 1 – Rs 47,700, Resistance 2 – Rs 47,900. September Silver closing price 66,390, Support 1 – Rs 66,000, Support 2 – Rs 65,500, Resistance 1 – Rs 66,750, Resistance 2 – Rs 67,300,” he added.
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