Gold price in India rose on Tuesday after the biggest drop in months in the previous session. On the Multi-Commodity Exchange (MCX), October gold contracts rose 0.39 per cent to Rs 46,065 for 10 grams at 0905 hours on August 10. Silver also rose significantly on Tuesday. The precious metal future jumped 0.75 per cent to Rs 63,109 on August 9.
In the international market, the yellow metal tumbled to a record low in the last few months after robust US job data. Spot gold fell to $1,730.47 per ounce by 0039 GMT. US gold futures edged 0.4% higher to $1,732.90 per ounce, Reuters reported. US Treasury yields climbed to a more than three week high on the back of record-high job openings in June. The employment by 590,000 to a record high of 10.1 million on the last day of June, according to monthly Job Openings and Labour Turnover Survey published US Labour Department.
Data Monday showed US job openings jumped to a record high in June and hiring increased. That came on the heels of Friday’s US monthly jobs report that showed US employers hired the most workers in nearly a year in July and continued to raise wages. US benchmark yields also strengthened on Monday and weighed on sentiments. Additionally, Atlanta Federal Reserve Bank President Raphael Bostic said on Monday the US economy is improving faster than expected, with the time when the Fed could start slowing its bond purchases nearing quickly and inflation already at a point that could satisfy one leg of a key test for the beginning of rate hikes. Bostic said he is eyeing the fourth quarter for the start of a bond-purchase taper but is open to an even sooner start if the job market keeps up its recent torrid pace of improvement, explained Sriram Iyer, senior research analyst at Reliance Securities.
International spot and futures bullion prices have started this Tuesday morning in Asian trade with small gains on bargain hunting. However, upside could be capped as the US Dollar continues to move higher this Tuesday morning in Asian trade. Investors now await further data, including the core consumer price index (CPI), on Wednesday. Technically, LBMA Gold holds a support of 100-Weeks Moving Average at 1737 levels and above which could see some bounced back up to $1754-$1767 levels. Support is at $1725-$1710 levels. LBMA Silver below $24.00 levels will continue its Bearish momentum up to $23.22-$22.70 levels. Resistance is at $23.88-$24.40 levels, Iyer added.
“Domestic gold and silver prices and Bullion Index futures will start with a marginally higher this Tuesday morning, tracking overseas prices. On the domestic front, MCX Gold October below Rs 46,300 will continue its correction up to Rs 46,100-45,850 levels. Resistance is at Rs 46,300-46,500 levels. MCX Silver September is sustaining below RS 63,000 below which could see RS 61,000-59,900 levels. Resistance is at Rs 63,300-64,000 levels,” he mentioned.
“The metals are still suffering from the reverberations of last Friday’s surprisingly strong US jobs report that pushed the US stock indexes to or near their record highs, rallied the US dollar index, pushed the US Treasury yields up (prices down)—all bearish elements for the metals. Gold and silver did somewhat recover from their ‘flash crash’ overnight lows. The jobs data Friday immediately set off heightened speculation the Federal Reserve would act sooner to reel in its easy monetary policies. That really spooked the metals markets bulls. Apparently, the metals traders are presently choosing not to focus on the bullish inflationary implications of a rebound in the US economy that is already seeing consumer and producer prices on the rise,” said Amit khare, AVP- research commodities, Ganganagar Commodities.
Read all the Latest News, Breaking News and Coronavirus News here.
Comments
0 comment