Gold prices fell Monday tracking international gold prices. At 12:34 PM, the MCX gold October futures were trading lower at Rs 37,799 per 10 gram, down 139 points or 0.37 per cent from the previous close.
Gold prices fell Monday tracking international gold prices. At 12:34 PM, the MCX gold October futures were trading lower at Rs 37,799 per 10 gram, down 139 points or 0.37 per cent from the previous close. Following suit, silver prices are also down by 284 points for September contracts at Rs 43,540 per kg. The international gold prices slipped today on account of stronger US dollar and recovery in equities. The concerns around recession also eased to some extent after reports of more stimulus from major central banks around the world. While spot gold was down 0.4% at $1,507.11 per ounce at 0602 GMT, the US gold futures declined 0.5 per cent to $1,515.70 an ounce. Despite the decline in gold prices, the analysts are positive on the precious metal.
Comex gold has rallied by nearly 18% year to date which signals that the undertone is surely positive. Having said this, in focus this week is Federal Reserve Chair Jerome Powell’s address at the Kansas Fed’s annual Jackson Hole gathering on Friday, which will be key to gauging whether US policymakers will add to July’s rate cut. Minutes of the Fed’s July meeting are due for release on Wednesday. The geopolitical risk has resurfaced with shooting down of Saudi Arabia drone by Yemini rebels. So the safe-haven investment demand may continue to support the prices this week, Jigar Trivedi, Fundamental Analyst – Commodities with Anand Rathi Shares and Stock Brokers told Financial Express Online.
“Meanwhile, India’s gold imports have fallen by 42% whereas silver imports have surged by 231% in July. We expect the subdued tone for gold in the domestic market due to too high prices in the market. Comex gold has very near term support of $1,500 – $1,475. Looking at the fundamental scenario, we recommend going long on dips this week,” Jigar Trivedi further added.
The gold prices drifted lower as equities moved up on increased risk appetite amid hopes that the global central banks would increase stimulus to boost growth. Prices remained under pressure after global financial markets regained footing, as China hinted at more support for its economy. Investors will shift their focus to the Federal Reserve’s annual symposium next week. Investors will shift their focus to the Federal Reserve’s annual symposium next week. Traders see about a one-in-three chance of a 50 basis-point rate cut by the Fed this September, according to Kedia Commodity.