1 week ago
Gold, Silver Rise as Oil Crashes Ahead of US Data
Gold and silver prices went up in India’s futures market on Wednesday.
Oil prices fell sharply, and the US dollar also weakened.
These moves can make precious metals more attractive to investors.
Investors are waiting for a US inflation report called the PCE price index.
They also want to hear Kevin Warsh speak at the Jackson Hole meeting.
Talks involving Iran and Oman raised hopes that shipping through the Strait of Hormuz could become easier.
However, tensions remained because of new US sanctions on Iran and disagreement with China.
Analysts still saw a generally strong trend for gold and silver.
They also warned that prices could briefly fall and gave different levels to watch.
MCX gold October futures rose 0.16% to ₹1,63,146 per 10 grams in early Wednesday trading.
MCX silver September futures gained 0.64% to ₹2,45,700 per kilogram around 9:10 AM.
Brent crude fell 3% toward $86 per barrel, while the US dollar index remained below 99.
Markets awaited the US July PCE inflation data and Kevin Warsh’s Jackson Hole speech for monetary-policy signals.
Analysts maintained a broadly positive outlook but identified differing support, resistance, and profit-taking levels for gold and silver.
- Who
- Gold and silver traders, investors, analysts, the US Federal Reserve, Iran, Oman, China, and the United States are involved in the developments described.
- What
- MCX gold and silver prices rose as crude oil prices and the US dollar declined ahead of US inflation data.
- Where
- On India’s Multi Commodity Exchange and in international markets; related geopolitical developments involve the Strait of Hormuz, Iran, Oman, China, and the United States.
- When
- Early trading on Wednesday, 26 August; the PCE data was due at 1230 GMT, with Kevin Warsh’s speech scheduled for Friday.
- Why
- Lower oil prices, a weaker dollar, expectations of reduced inflation pressure, and continued demand for precious metals supported gold and silver.
Key facts
- MCX gold
- October futures rose 0.16% to ₹1,63,146 per 10 grams around 9:10 AM.
- MCX silver
- September futures gained 0.64% to ₹2,45,700 per kilogram around 9:10 AM.
- Brent crude
- Futures fell 3% to near $86 per barrel.
- US dollar index
- The index traded below 99.
- US inflation data
- The July Personal Consumption Expenditures price index was due at 1230 GMT.
- Gold levels
- Analysts cited MCX gold support between ₹1,60,000 and ₹1,62,600 and resistance between ₹1,63,600 and ₹1,67,000, depending on the assessment.
- Silver levels
- Analysts cited MCX silver support at ₹2,41,400 and ₹2,39,100, with resistance at ₹2,47,000 and ₹2,50,000.
Quotes
Manoj Kumar Jain
Analyst at Prithvifinmart Commodity Research
“Lower energy prices could reduce inflationary pressure and give the Federal Reserve greater flexibility on rates. Markets now await the U.S. PCE inflation data and Fed Chair Warsh’s Jackson Hole speech for further policy cues. Meanwhile, renewed demand for gold as a hedge against fiscal and currency risks continues to support the broader bullish trend.”
livemint.com
“We have suggested buying gold on Tuesday, around ₹1,62,200 and ₹1,61,000 range with a stop loss below ₹1,59,800 for the target of ₹1,64,000 and ₹1,65,000. Those holding long positions in gold are also suggested to strictly follow the given stop loss and book profits near the given target levels.”
livemint.com
Sources
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