October gold on Multi Commodity Exchange (MCX) opened at Rs 51,601 per 10 gm, touched a high of Rs 51,799 gm and was trading at Rs 51,530 per 10 gm at around 12.30 pm.
MCX September silver opened at Rs 66,709 per kg, touched a high of Rs 67,794 and a low of Rs 66,600 in early trade. At around 12.30 pm, it was trading at Rs 67,300 per kg.
Commenting on the bullion price trend Navneet Damani, vice president (commodities research) at Motilal Oswal Financial Services said “Gold prices held steady after rising almost 1% in the previous session on a weaker US dollar, as investors await speech from Jerome Powell which is scheduled later in the day. Mixed actions and statements from both US and Chinese officials have made market participants anxious.”
“Powell is expected to provide more insight on the US central bank’s strategy on inflation and monetary policy. Also US Q2 GDP and weekly jobless claims are scheduled on the calendar today; better than expected numbers could keep pressure on the metal,” Damani said.
Tapan Patel, senior analyst (commodities) at HDFC Securities said that bullion prices are trading under pressure backed by positive Chinese industrial profit data and US durable goods orders. “Gold and silver prices are expected to trade sideways to up for the day over rising geopolitical tensions while the market may see some volatility on US FED chairman’s speech at Jackson Hole symposium. MCX Gold October may find support at Rs 51,200 per 10 gm while silver September has important support at Rs 65,000 per kg.”
“Upside remained limited after upbeat durable goods orders showed signs that the US is showing momentum in its economic recovery from Covid-19. Downside was limited as US-China tensions simmered after media reports revealed that China fired four missiles into the disputed South China sea on Wednesday,” said Sriram Iyer, senior research analyst at Reliance Securities
Also US dollar was trading marginally lower this Thursday morning trade and capped downside.
Anuj Gupta, deputy vice president (commodities and currencies Research), Angel Broking said that market is expecting some dovish speech from Powell which may be negative for the dollar. So gold and silver prices may increase before the Jackson Hole Economic Symposium.”
However, Hareesh V, head of commodity research at Geojit Financial feels that gold will continue to trade clueless today. “But major weakness is unlikely due to the increased safe haven demand of the metal.”