Gold Rate Today (August 22): Gold, silver trade lower tracking international rate movement; increased rate cut hopes render bullion attractive

Gold Rate Today (August 22): Tracking gold price movement in the international markets, gold prices in India on the MCX traded weak even as rate cut hopes were further cemented after the latest Fed meeting minutes and the recent labour data in the US. 

Last, at around 10:30 am, gold October futures traded lower by 0.22 per cent or Rs 155 at Rs 71,675 per 10 gm, while silver traded weak by 0.13 per cent or Rs 113 at Rs 84,750 per kg.

Spot gold in the US, meanwhile, also declined from their new all-time high levels clinged in Tuesday's session of $2,531.6 at $3,501.56, down 0.43 per cent or $10.85 per ounce.

Gold price remained steady at around $2,500 after the Federal Reserve revealed its latest meeting monetary policy minutes, which hinted the US central bank could cut interest rates.  The Federal Open Market Committee (FOMC) minutes showed that most participants said, “it would likely be appropriate to ease policy at the next meeting if data continued to come in as expected.” Furthermore, the minutes added that the recent progress on inflation and the increase in the unemployment rate warranted a 25-basis point (bps) rate cut at the July meeting. The minutes showed that officials are gaining confidence that inflation is moving towards the 2 per cent goal and that risks to the employment goal have increased, added Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.

Outlook on Gold

Gold could continue to eye upcoming major events scheduled in the week amid release of Initial Jobless Claims, S&P Global PMIs and housing data. On Friday, traders will keep an eye on the Fed Chair Jerome Powell's speech at the beginning of the Jackson Hole Symposium, hosted by the Kansas City Fed in Wyoming which could throw some important info on trajectory of rate cuts by Fed this year. Overall, we do continue to see Gold turning volatile in late trade with Western investors still preferring the metal at higher levels while Asian investors continue to dump the metal due to higher prices.

How to trade gold and silver on MCX?

Qureshi suggests buying MCX Gold October futures on dips for a target of Rs 72,300 at around Rs 71,800, keeping a stop loss of Rs 71,500 per 10 gm. Meanwhile, for silver, the expert has suggested to keep a target of Rs 86,800 at a price of Rs 84,800, keeping a stop loss at Rs 83,800 per kg.