6 days ago
Gold and silver rise as weaker dollar supports precious metals
Gold and silver prices went up in India on Thursday morning.
A weaker US dollar helped make these metals more attractive.
Investors are also worried that large US debts could reduce the dollar’s value.
Many traders think the Federal Reserve may pause rate increases in September.
Inflation is still higher than the Federal Reserve’s 2% target.
Investors are waiting for Kevin Warsh’s speech on Friday for more clues.
Some experts think gold could briefly fall before rising again.
Others advise traders to wait for more clarity but say long-term investors may buy gradually during declines.
MCX gold October futures rose 0.28% to ₹1,60,108 per 10 grams on Thursday morning.
MCX silver September contracts gained 0.41% to ₹2,40,625 per kilogram around 9:45 AM.
Experts linked the gains to a weaker dollar, debt concerns and currency-debasement fears.
Traders are watching Kevin Warsh’s Friday speech for signals on inflation and US interest rates.
Analysts identified key support and resistance levels while maintaining generally positive medium-term views.
- Who
- Gold and silver traders, analysts, the US Federal Reserve and its Chair Kevin Warsh.
- What
- Gold and silver prices rose on the MCX, while analysts provided market forecasts and trading levels.
- Where
- The Multi Commodity Exchange of India and US markets; the symposium is in Wyoming.
- When
- Thursday morning; Kevin Warsh’s remarks are expected on Friday at the annual Jackson Hole symposium.
- Why
- Prices were supported by a weaker US dollar, currency-debasement concerns, elevated US debt and expectations of a possible pause in Federal Reserve rate hikes.
Bullish outlook
Cautious approach
Near-term direction
Bullish outlook
Ravi Singh said dips in gold could be buying opportunities and that the broader trend remains bullish; Jigar Trivedi expects MCX gold to reach ₹1,60,500 before the Fed Chair’s speech.
Cautious approach
Singh warned that MCX gold could correct toward ₹1,56,000 before attempting another rise.
Trading strategy
Bullish outlook
Singh said a sustained recovery after gold holds ₹1,56,000 would support further upside, while Manoj Kumar Jain said long-term investors could accumulate gold and silver gradually during declines.
Cautious approach
Jain advised traders to stay away from precious metals until there is greater clarity about duty-cut rumours.
Key facts
- MCX gold price
- October futures rose 0.28% to ₹1,60,108 per 10 grams around 9:45 AM.
- MCX silver price
- September contracts rose 0.41% to ₹2,40,625 per kilogram around 9:45 AM.
- US gold price
- December gold futures gained 0.20% to $4,697.45 per troy ounce.
- Inflation
- Core PCE rose 0.2% month-on-month and 3.3% year-on-year in July; headline PCE rose 3.7% year-on-year.
- Fed rate expectations
- The CME FedWatch Tool indicated a 36.5% chance of a September hike and a 72.7% chance by December.
- MCX gold levels
- Support was identified at ₹1,58,800 and ₹1,57,700, with resistance at ₹1,60,600 and ₹1,61,500.
- MCX silver levels
- Support was identified at ₹2,37,000 and ₹2,34,400, with resistance at ₹2,42,000 and ₹2,44,500.
Quotes
Jigar Trivedi
Senior Research Analyst at IndusInd Securities
“Investors now await Warsh’s speech at the annual Jackson Hole symposium on Friday, although he is not expected to offer clear guidance on the central bank’s September policy decision”
livemint.com
“With fiscal concerns, elevated debt and the upcoming Jackson Hole speech keeping markets alert, dips in gold remain an opportunity while the larger trend stays bullish”
livemint.com
Sources
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