Gold price in India witnessed a huge jump on Thursday, following global cues. On the Multi-Commodity Exchange (MCX), gold price future jumped 0.95 per cent to Rs 51,200 for 10 grams at 1350 hours on July 28. Silver price future also rose per cent to Rs 56,521 for a kilogram on Thursday. Yellow metal prices jumped as the US dollar and Treasury yields had dropped follow the interest rate hike by the Federal Reserve.
In the international market, Spot gold was up 0.2 per cent at $1,736.89 per ounce, as of 0104 GMT. US gold futures gained 0.9 per cent to $1,734.80 per ounce. Spot silver eased 0.2 per cent to $19.09 per ounce. The central bank of the United States increased the interest rates by three-quarters of a percentage point for the second straight meeting to tame rising inflation. Additionally, Fed chairman Jerome Powell said another “unusually large” jump in interest rates may be appropriate at the September meeting. However, the decision will be taken by the the incoming economic data, he further added.
He also mentioned that the United States central bank will be looking for moderately restrictive level by the end of the year, meaning a 3 per cent to 3.5 per cent level for the fed funds rate, which was in line market expectations.
The dollar declined 0.6 per cent overnight after Powell had signalled that the Fed could slow the pace of rate hikes at some point. Benchmark US Treasury yields fell to hover near two-month lows. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold.
Gold Price Future: What Analysts Say
“MCX gold prices are expected to rise further towards Rs 51,100 for the day amid weakness in dollar index and rising inflation. Silver prices are expected to take cues from gold prices and may rally towards Rs 55,500 levels for the day,” ICICI Direct Research said in its report. “Additionally, investors will remain cautious ahead of GDP and jobless data from the US,” it added.
“Gold has support at $1728-1717, while resistance is at $1748-1761. Silver has support at $19.02-18.80, while resistance is at $19.40-19.62. In INR terms gold has support at Rs 50,650–50,420, while resistance is at Rs 51,060–51,240,” said Rahul Kalantri, VP commodities, Mehta Equities Ltd.
“Domestic gold futures prices could start higher this Thursday morning, tracking overseas markets. A stronger rupee could cap upside. Today’s range of MCX August gold is Rs 50,565-50,815,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Gold priced in dollars becomes more affordable for holders of foreign currencies as the dollar declines. We expect gold to trade higher towards 51150 levels, which could prompt the price to move higher to 51550 levels,” Saish Sandeep Sawant Dessai, research associate- base metals, Angel One Ltd
Silver Price Future Outlook
Silver has support at Rs 54,750-54,350, while resistance is at Rs 55,780–56,210, Kalantri mentioned. “Today’s range of MCX silver September Rs 54,410-55,200,” said Iyer.
Read all the Latest News and Breaking News here
Comments
0 comment