Gold Rate Today (August 23): Gold, silver prices edge higher ahead of key Fed Chair address; check outlook, trading strategy
Gold prices are set for their weekly losses after hitting new all-time high during the week. This is even as the likely rate cut by the US Fed strengthen's bullion appeal as non-yielding assets gain attractiveness amid interest rate cuts.
Gold Rate Today (August 22): Gold prices traded in the green on the MCX as investors await the key address by Fed Chair Jerome Powell at Jackson Hole today for cues on the quantum of probable rate by the US Federal Reserve.
Gold price in international markets
At the last count, spot gold internationally traded at $2,495.48 per ounce, up 0.43 per cent. Earlier this week, gold prices internationally marked a new high of $2,531.6 and now has retreated nearly 1.44 per cent.
Gold, silver price on MCX
On the MCX, gold October futures last at around 11:00 am traded higher by 0.33 per cent or Rs 238 at Rs 71,432, while silver September futures traded with gains of 0.4 per cent or Rs 338 at Rs 84,074 per 10 kg.
Gold prices witness sharp volatility amid slew of economic data, key events
Gold has been showing extreme volatility amid a slew of data across economies. After registering sharp gains to all-time high levels internationally, gold prices again tumbled in the previous day's trade on the back of tick-up in the US Treasury bond yields following the data release in the United States (US), which bolstered the greenback and weighed on the gold.
Data from the US Bureau of Labor Statistics (BLS) revealed that the number of Americans filing for unemployment benefits rose above estimates and the prior reading figures. Other data showed that Business Activity remains solid, even though manufacturing activity contracted for the second straight month, according to S&P Global.
Bullion traders digested the Federal Open Market Committee’s (FOMC) last meeting Minutes which revealed that policymakers had grown confident that inflation risks are skewed to the downside, while risks of achieving maximum employment had risen.
Outlook on gold for the medium to long term
Given the fundamental backdrop, investors are preparing for Fed Chair Jerome Powell's speech at Jackson Hole where he is expected to lay the groundwork for monetary policy for the second half of 2024. Overall profit-taking remains as the main driver of Gold’s dip below $2,500 ahead of Powell’s speech.
Gold’s uptrend remains in place for medium to long term perspective, but a daily close below the crucial $2,483 may trigger a pullback for short term. On the other hand a weekly close above $ 2500 could see a retest of $ 2531 per oz levels, added Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.
Trading strategy in gold/silver on MCX
Anuj Gupta, Head- Commodities and Currencies at HDFC Securities holds a bullish view on the bullion and sees it to trade in a range of Rs 71,450 to Rs 73,100 per 10 gm. The metal has support at Rs 71450/71080, while it can show resistance at Rs 72580/73100 levels.
Qureshi suggests buying MCX Gold October futures on dips for a target of Rs 71,900 at around Rs 71,200, keeping a stop loss of Rs 70,800 per 10 gm. Meanwhile, for silver, the expert has suggested to keep a target of Rs 85,700 and buy the white metal on dips at a price of around Rs 83,700, keeping a stop loss at Rs 82,700 per kg.