Gold rate (August 27): Gold prices steady near Rs 72,000, silver up Rs 200 at Rs 85,868 per kg

Gold rate (August 27): Gold prices in India traded on a tepid note even as globally gold is hovering near its record all-time high levels amid escalating geo-political tensions and the latest Fed comments. At around 11:49 pm, gold October futures on the MCX traded rather steady with a posiitve bias at Rs 72,045, up 0.01 per cent.  Silver futures (September), in comparison, traded higher by 0.23 per cent or Rs 200 at Rs 85,868 per 10 gm.

Internationally too, COMEX gold traded steady but with a negative bias at $2,551.5 per ounce, down 0.14 per cent.

The yellow metal after the recent surge has witnessed some selling pressure after the latest consumer durable print in the US. Gold prices traded subdued primarily amid the uptick in the dollar index (DXY). At the last count, the DXY traded flat at 100.85. 

What are the headwinds and tailwinds impacting gold price movement currently?

Tailwinds

Softer dollar index 

Escalating geo-political tensions in the Middle East

Dovish policy stance in Powell's address

Headwinds

China's demand slowdown for gold a big concern. China's halting of gold purchases for three months raises concerns about future demand, especially amid economic slowdown worries.

US economic data this week, including GDP and consumer confidence, will likely impact market sentiment, added Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.

Outlook

The prices are expected to remain range bound with fresh cues awaited from US consumer confidence and GDP numbers due tomorrow.

Trading strategy in Gold/silver 

The expert has advised to buy the metal on dips at a price of Rs 71,800 for a target of Rs 72,300, keeping a stop loss of Rs 71,300. For Silver September futures, the expert has given a buy on dips at around Rs 85,000 for a target of Rs 87,000.

Gold has support at $2534-2522, while resistance at $2572-2588 per troy ounce and silver has support at $30.00-29.74, while resistance is at $30.60-30.88 per troy ounce in today’s session, noted Manoj Jain, Director- Prithvi Finmart.

At MCX, gold is having support at 71820-71550 and resistance at 72300-72580 while silver is having support at 87650-87100 and resistance at 88950-89600. We suggest buying silver on dips around 87700 with a stop loss of 87100 for the target of 89100, he added.

2,551.50-3.70 (-0.14%)