Gold, silver rate (August 30): Gold, prices declines as traders await key US data later today

Gold price amid improved macro outlook are losing sheen and traded lower in Friday's session.

Gold prices (August 30, 2024): Gold prices tracking international rates were down as traders await the key US data print later today. At the last count, MCX gold (October) delivery traded down by 0.38 per cent or Rs 276 at Rs71,912 per 10 gm. Silver (September) futures traded at Rs 84,401 per kg, down 0.55 per cent.

On the COMEX, gold traded down by 0.5 per cent at $2,547.2 per ounce.

Gold prices erased some of the gains in early trade after it witnessed overnight rise late in the North American session even though the US economy remained resilient after Gross Domestic Product (GDP) figures propelled the Greenback higher.

Despite this, Gold prices continue to grind higher amid expectations of the Fed's first rate cut. Spot prices posted gains of 0.78 per cent and exchanged hands at $2,523.

Market sentiment turned positive, as traders remain laser-focused on data that could confirm the size of the Federal Reserve’s (Fed) first rate cut, added Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.

In the meantime, the US Bureau of Economic Analysis revealed the country grew in Q2 2024 above the preliminary release, lifting the Personal Consumption Expenditures Price Index (PCE) Deflator with it. At the same time, the US Department of Labor revealed that fewer than expected Americans applied for unemployment benefits, which is a relief for the Fed, which acknowledged in Powell’s speech that employment risks are tilted to the upside.

Outlook

Qureshi pointed that given the fundamental backdrop, gold prices have shown surprising resilience despite recent economic indicators portraying economic stability indicating prices are more driven by speculative activities.

Meanwhile domestic sentiments remain positive as duty cuts last month could lead to incremental import demand this year ahead of festive and wedding season. On the flip side US data on consumer spending & PCE index could also remain crucial in determining whether prices could witness new all-time highs in coming sessions or not, added Qureshi.

Trading strategy in gold/silver on MCX

For Gold MCX (October), the expert has recommended a buy on dip at a price of around Rs 71,900 for a target of Rs 72,500, keeping a stop loss of Rs 71,400. While for Silver, the suggested target is Rs 86,300 and a buy on dip is recommended at around Rs 84,300 with a stop loss of Rs 83,300 per kg.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.