Gold prices in India jumped on Monday. On the Multi-Commodity Exchange (MCX), gold price futures increased 0.13 per cent to Rs 51,940 for 10 grams at 1230 hours on August 8. Silver witnessed a huge jump on Monday. The precious metal futures increased 0.5 per cent to Rs 57,648 for a kilogram on August 8.
In the international market, gold price edged lower on Monday. Spot gold was down 0.1 per cent at $1,772.27 per ounce, as of 0303 GMT while US gold futures eased 0.1 per cent to $1,790.
US employers added 528,000 jobs last month, according to the data released by the US labour department. The unemployment rate fell to a five-decade low of 3.5 per cent, and wage growth accelerated, it added. The data has prompted the Federal Open Market Committee to raise interest rates by 75 basis points when it meets in September.
The robust US job numbers also pushed the dollar index to its highest since July 28. Hence, the yellow metal has become more expensive for other currency holders. Benchmark US 10-year Treasury yields also jumped near their highest level in more than two weeks scaled on Friday.
“Gold rallied sharply in last few days but seems to have lost momentum near $1800/oz level. We may see some correction as market players respond to US jobs report which makes a case for Fed to continue with aggressive rate hikes.” Ravindra Rao, VP- head commodity Research at Kotak Securities.
Gold Price Outlook: What Analysts Recommend
“Gold is showing profit booking on account of gains in the US bond yield and strength in the dollar. However, gains in global energy prices and downbeat U.S. data released last week supported precious metals. Gold may remain in strong hands this week also. Buy Zone Above: Rs 52,000 for the target of Rs 52,300. Sell Zone Below: Rs 51,700 for the target of Rs 51,500,” said Ravi Singh, vice president and head of research, ShareIndia.
“The overall chart structure is weak for bullions. So investors should book their long positions in bullion and can create fresh short positions near given resistance levels,” said Amit Khare, AVP, research commodities, Ganganagar Commodity Limited
“Traders should focus important technical levels given below for the day while trading : October gold closing price 51874, Support 1 – Rs 51,600, Support 2 – Rs 51,400, Resistance 1 – Rs 52,100, Resistance 2 – Rs 52,400. September silver closing price Rs 57,364, Support 1 – Rs 56,900, Support 2 – Rs 56,400, Resistance 1 – Rs 57,800, Resistance 2 – Rs 58,300,” Khare added.
“Domestic gold futures prices could start started flat this Monday morning, tracking overseas markets. Today’s range of MCX October gold is Rs 52,201-52,401. Today’s range of MCX silver September Rs 56,571-Rs 58,194,” said Sriram Iyer, senior research analyst at Reliance Securities.
“MCX gold prices are expected to trade with a negative bias for the day amid rise in US 10 years bond yields. It is likely to break the hurdle of Rs 51,620 to continue its downward trend towards the level of Rs 51,230 in coming sessions,” said ICICI Direct in its research report. “Additionally, silver prices are expected to take cues from gold prices and may drop towards Rs 56,550 levels in coming sessions,” it added.