Gold price in India was trading flat on Wednesday. The yellow metal saw a huge drop in the previous session. On the Multi-Commodity Exchange (MCX), October gold contracts rose marginally 0.08 per cent to Rs 47,902 for 10 grams at 0955 hours. Silver price saw a jump on August 4. The precious metal was up by 0.23 per cent to Rs 68,068 on Wednesday. In the international market, gold price edged higher on Wednesday on the back of subdued dollar. Spot gold rose 0.2% to $1,814.27 per ounce by 0303 GMT, while US gold futures were 0.1% higher at $1,816.00. The dollar was recorded near recent lows against other currencies. Investors are keeping an eye on US jobs data on the labour market recovery. The National Employment Report by payrolls processing firm ADP due later in the day.
“Ever since last Thursday when the gold ran from $1806 to $1831 immediately following last month’s FOMC meeting gold has been consolidating with a definitive bias to the downside. However, recent action has been muted at best with small price changes from day to day, as well as from open to close. It seems as though market participants are waiting for the next big fundamental event which will be the US Labor Department’s jobs report released this Friday.
Because the current monetary policy of the Federal Reserve is data-dependent, it is the jobs report that voting members will look at intently to get a sense of how the economy is rebounding. Therefore, traders and investors will look intently at the upcoming jobs report for July 2021, to get a sense of what the future actions and timeline of the Federal Reserve might look like," said Amit Khare, AVP, Research Commodities, Ganganagar Commodities Limited.
“Gold and silver are giving some positive signal on daily chart, momentum indicator RSI also indicating the same on hourly chart, So traders are advise to create fresh long position near given support levels, traders should also focus important technical levels given below for the day: August gold closing price Rs 47,864, Support 1 - Rs 47,800, Support 2 - Rs 47,600, Resistance 1 - Rs 48,000, Resistance 2 - Rs 48,200. September Silver closing price Rs 67,914, Support 1 - Rs 67,450, Support 2 - Rs 67,000, Resistance 1 - Rs 68,350, Resistance 2 - Rs 69,000," he added.
“The gold prices continue to trade under pressure and trading below all the leading momentum indicator maintaining crucial support at $1790 an ounce. Market participants are eyeing on US non-farm payrolls data to be release on this Friday while precious metal is like to trade directionless in absence of any fresh catalyst," said Sandeep Matta, founder, TRADEIT Investment Advisor.
“Gold on MCX is traded negatively and closed below the key phycological level of Rs 48,000 while completely ignoring low growth-high inflation scenario in globally. Indian equity indices have made a record high in yesterday’s session keeping precious metal market participants a bit nervous. Our view on gold is neutral today as the prices are going nowhere and becoming purely a day trader’s play while respecting all key pivotal level both the sides. Key level for gold August contract – Rs 47,886. Buy zone above Rs 47,900 for the target of Rs 47,998-48,078. Sell zone below Rs 47,875 for the target of Rs 47,782-47,705," Matta added.