Gold price in India saw a significant drop on Tuesday, tracking its overseas peers. On the Multi-Commodity Exchange (MCX), October gold contracts tanked 0.22 per cent to Rs 47,480 for 10 grams at 0930 hours on August 24. Silver also witnessed a huge slump on Tuesday. The precious metal future was down by 22 per cent to Rs 62,788 on August 24.
In the international market, gold prices edged lower on Tuesday. Spot gold eased 0.2 per cent to $1,801.78 per ounce by 0100 GMT, having jumped about 1.4 per cent in the previous session. US gold futures were little changed at $1,804.90. The invetors will keenly follow US Fed Chair Jerome Powell’s speech at the annual Jackson Hole, Wyoming for guidance on the US central bank’s taper plans. US business activity growth slowed for a third straight month in August, data from IHS Markit showed.
“International spot and futures gold and silver prices have started marginally weaker on Tuesday morning in Asian trade. Although downside was capped on expectations that the US Federal Reserve might delay cutting back its stimulus amid rising cases of the Delta coronavirus variant. Investors are now focused on Fed Chair Jerome Powell’s speech at the annual Jackson Hole, Wyoming, symposium awaiting guidance on the US central bank’s taper plans. Technically, LBMA Gold above $1800 level could see a bullish momentum up to $1808-$1820 levels. Support is at $1785-$1773 levels. Technically, LBMA Silver above $23.00 level could see $24.10-$25.22 levels. Support is at $23.40-$22.65 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Domestic gold and silver prices and Bullion Index futures could start flat this Tuesday morning, tracking overseas prices. On the domestic front, MCX Gold October could see sideways to marginal upside momentum where support is at Rs 47,450-47,300 levels resistance is at Rs 47,650-47,800 levels. MCX Silver September above Rs 62500 level could see Rs 63,200-63,900 levels. Support is at Rs 62,000-61,400 levels. MCXBULLDEX May could trade on Bullish note with in the range of Rs 14,050-14,400 levels.” he added.
“The focus of the marketplace this week is on the annual Federal Reserve symposium held in Jackson Hole, Wyoming. The confab has been pared back a bit and parts of it will be virtual this year due to the spreading delta variant of the coronavirus. Early this week, traders and investors are reassessing recent notions the Federal Reserve will lean hawkish on US monetary policy at the Fed symposium. The rapidly spreading Covid variant has many now thinking the Fed will have to wait longer to reel in its easy-money policies. Dallas Fed President Rob Kaplan said Friday he is rethinking his call for an early tapering process for the Fed’s bond purchases, due to the spreading virus and its potential impact on the US economy,” said Amit khare, AVP- Research Commodities, Ganganagar Commodities Limited.
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