Monday’s opening price for gold on the Multi Commodity Exchange (MCX) was Rs 58,761 per 10 grammes, and the price fell as low as Rs 58,685 during the day. Prices on the world market were roughly $1,915.3 per troy ounce. On the MCX, silver opened at Rs 73,668 per kg and fell as low as Rs 73,522 during the course of the day. On the international market, the cost per troy ounce was roughly $24.19 at the time.
According to Manav Modi, an analyst with the MOFSL, “Gold prices were flat as Federal Reserve Chair Jerome Powell’s hawkish commentary doused expectations that the US rate-hiking cycle was nearing an end, with investors awaiting economic data this week for confirmation on rate trajectory.”
“Interestingly, the CME Fed-Watch tool continues to indicate more than 80% probability for a pause at the September Fed meeting even after comments from governors of major central bankers whose rate hike expectations have strengthened. The importance of this week will depend on key economic indicators including the US GDP, PCE, manufacturing PMI, and jobs report, which could further influence the price of gold and silver, according to Modi.
The previous session’s closing price of MCX Gold was not particularly encouraging. Following the Fed’s aggressive remark from the prior week, gold prices are moving in a range from sideways to negative. It declared that they would take all necessary steps to control the excessive inflation and that our inflation target of 2% was and will remain.
A rate hike is possible, which might harm bullion sentiment moving forward, according to Deveya Gaglani, Research Analyst – Commodities, Axis Securities. Additionally, the dollar index increased beyond $104, which is unfavourable for gold prices because of its inverse correlation. Overall, prices have been trading in a narrow range between 58200 and 59000 for the previous few days, and we anticipate that they will continue to do so. Prices are trading below the 20, and 60 EMAs on the daily chart, and the RSI is getting close to the 40 level, which shows that price momentum is weak. As long as the 59000 level is intact on the upswing, selling gold is advised.
“October Gold closed at 58640 (-0.29%) and September Silver closed at 73549 (-0.02%), Bullions daily charts are looking attractive,” stated Amit Khare, Associate Vice President of GCL Broking. In the near future, we can expect positive upside movement. The momentum indicator RSI also shows the same trend, thus traders are encouraged to open new buy positions in gold and silver close to the indicated support level one with a stop loss at the indicated support level two, and to close out existing positions close to the indicated resistance levels: Gold October Support 58500/58200 and Resistance 59000/59200. Support 73200/72400 and Resistance 74200/75000 for silver in September.