Gold Rate Today (August 26): Gold, silver prices trade steady; gold close to Rs 72,000/ 10gm
Gold prices in Monday's session (August 26) on the MCX traded with marginal gains at Rs 71,788 per 10 gm even as the recent dovish comment by the Fed Chair Jerome Powell cemented hopes of a rate cut in the next meeting. Silver MCX, meanwhile, traded with a cut of 0.2 per cent or Rs 171 at Rs 85,040 per kg.
Gold prices trade subdued
Gold prices trade subdued tracking gold internationally even as Fed's Powell hinted at rate cut in the next meeting. At the last count, Spot Gold traded with a cut of 0.09 per cent at $ 2,510.06 per ounce.
Spot gold maintained at $2,500 per oz
Spot gold traded around $2510 after bouncing off Friday’s lows of $2484. Bullion prices rose sharply as Powell said, “The time has come for policy to adjust. " He acknowledged that inflation is on the path to 2% and expressed that the Fed has shifted towards achieving the maximum employment mandate. US Treasury bond yields immediately dropped, with the US 10- year benchmark note slumping five basis points to 3.80%.
Dollar index and 10-year US treasury yield
The US dollar index traded subdued at 100.567, while the US 10-year treasury yield also was down.
Gold price outlook
Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said, "Gold could start the week on a steady note amid recent escalations on geopolitical front and dovish stance by Powell in his last speech could remain an upside trigger for prices. However, its a data-heavy week which could alter expectations of amount of rate cuts happening this year.
Gold uptrend may hit brakes in coming weeks in case payrolls report due on 06th September shows unemployment rate surpassing last figure of 4.3 per cent which brings in a case for deeper rate cuts bringing in sell-off in equities amid unwinding currency based long positioning gold, she added.
Gold price trading strategy
Qureshi suggests buying MCX Gold October futures on dips for a target at around Rs 71,800, keeping a stop loss of Rs 71,300 per 10 gm for a target of Rs 72,300. Meanwhile, for silver, the expert has suggested to keep a target of Rs 87,00 and buy the white metal on dips at a price of around Rs 85,000, keeping a stop loss at Rs 84,000 per kg.