Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited-
Gold prices are modestly higher in midday U.S. trading, on some safe-haven demand and bulls taking advantage of the earlier dip in prices to do some bargain hunting. Silver prices are moderately lower. October gold futures were last up $3.50 at $1,792.30. September Comex silver was last down $0.21 at $23.565 an ounce.
A terrorist attack at the airport evacuating people from Afghanistan put a bit of a scare into the marketplace as the stock market weakened slightly, and in turn pushed gold prices mildly up.
Yesterday U.S. GDP report for the second quarter showed a 6.6% growth rate versus 6.5% reported in the first GDP estimate for the second quarter. The closely watched PCE price index of the GPD report came in at up 6.5% versus the first estimate of up 6.4%. The Fed’s Bullard on CNBC said the PCE index and price inflation in general is “higher than we’d expected.” The PCE index is just one more indicator that inflation is running too hot.
The key outside markets today see the U.S. dollar index firmer and still trending higher. Nymex crude oil futures prices are weaker and trading around $68.00 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.346%. U.S. bond yields are in the rise this week, hinting that bond traders are at least a bit worried about a hawkish U.S. monetary policy tone coming from the Fed at this week’s Jackson Hole confab.
Gold and Silver showed a mixed movement in Friday trading session, On the Multi-Commodity Exchange (MCX), October gold contracts closed higher by 0.12% at Rs 47,237 for 10 grams. While September contract Silver futures closed at Rs 62,723 a kilogram 0.87% down. Yesterday October Gold made a low of 46934 then made a high of 47380, And Silver made a high of 63289 then made a low of 62397. Gold and Silver are making bottom and Momentum indicator RSI creating a strong positive divergence in Silver in daily as well as 4 hourly chart, any dips is a opportunity to create fresh long positions in Bullions, Fundamentals also in support of bullions, So traders are advised to create fresh buy positions in Gold and Silver near given support levels, traders should also focus important technical levels given below for the day:
August Gold closing price 47237, Support 1 – 46900, Support 2 – 46700, Resistance 1 – 47500, Resistance 2 – 47725.
September Silver closing price 62723, Support 1 – 62200, Support 2 – 61750, Resistance 1 – 63250, Resistance 2 – 64000.Sandeep Matta, Founder, TRADEIT Investment AdvisorGold price are seeing some bullish traction from the lower range of the range and trading above 50-DEMA. Market participants are expecting to get more clarity and insights on precious metal from the speech of Fed chairman at the Jackson Hole Economic Symposium. Increasing threats of delta variants are likely to negatively impact economic growth which may force fed reserve to take a step back and would be a bullish trigger point both for Gold and Silver.
Gold on MCX is also closed mostly unchanged and awaiting more clarity on tapering timelines from the Fed meeting. The outlook for the gold is positive however we may see sharp moves in prices either side based on the outcome of the fed meeting.
Key level for GOLD AUG Contract – 47185
Buy Zone Above – 47185 for the target of 47433-47630
Sell Zone Below – 47150 for the target of 46987-46700