Gold and silver prices today: Analysts predict upward trend for gold amid economic uncertainty
Analysts say gold recovered on Monday due to short covering, as prices were in the oversold zone last week
- Aug 22, 2023,
- Updated Aug 22, 2023 10:57 AM IST
Gold opened strongly on the Multi-Commodity Exchange (MCX) on Tuesday, starting at a promising Rs 58,526 per 10 grams and hitting an intraday low of Rs 58,500. Internationally, gold prices are also increasing, hovering at around $1,889.40 per troy ounce.
Silver, another influential player in the commodities market, showed similar performance. It opened at Rs 71,754 per kg on the MCX and recorded an intraday low of Rs 71,631. Internationally, silver traded for roughly $22.73 per troy ounce.
Expert comment provided by Anuj Gupta, Head of Commodity and Currency at HDFC Securities, explains recent market fluctuations. “Yesterday, gold prices closed positively, higher by 0.20%, and closed at 58,490 levels,” Gupta said. “Prices recovered due to the short covering seen on the chart, as prices were in the oversold zone last week.”
He further clarified that profit booking could be seen in the dollar index, which suggests that gold prices are on support levels and a short covering on market prices is expected.
The slowing of the economy after the downgrade of the US and China supports bullions, as it is considered a safe haven in times of economic uncertainty.
Looking at the future, Gupta has identified clear market trends, saying, “Technically, we have strong support at 58,200 levels and then at 58,000 levels, Resistance at 58,700 and then 58,900 levels.” He advises buying on dips around the 58,100-58,200 levels with a stop-loss of 57,900 and aiming for the target of 58,700 to 58,800 levels.
For gold traders in the international market, Gupta predicts that gold may test $1,900 to $1,905 levels. Such trends indicate a promising period for those trading in gold on domestic and international markets.
Amit Khare, Associate Vice President at GCL Broking, said, “October Gold closed at 58490 (0.16%) and September Silver closed at 71662(2.05%), Bullions daily charts are trading at demand zone, any time we can see short covering rally in bullions, Momentum Indicator RSI also indicating the same, So traders are advised to make fresh buy positions in Gold and Silver near given support level one with the stop loss of support level two and book near given resistance levels: Gold October Support 58300/58000 and Resistance 58700/59000. Silver September Support 70900/70000 and Resistance 72000/72500.”
On Tuesday, gold prices fortified their position above recent lows, a surprising outcome considering the U.S. Treasury yields have rocketed to nearly 16-year highs. The reason for this unpredicted movement is the anticipation of this week's central bankers' meeting, where investors are eagerly awaiting clues regarding future interest rates.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "The yield on 10-year Treasury notes hit highs last seen during the Great Financial Crisis in November 2007 as a resilient U.S. economy boosted view the Federal Reserve will keep interest rates higher for longer. Dollar index too continues to hover around their 7 week highs. For an outlook on interest rates, comments from Fed Chair Jerome Powell on Friday will be monitored at a meeting of central bankers at Jackson Hole, Wyoming. Governors of major central banks will present their case, regarding Inflation, growth and overall monetary policy situation, at the Jackson hole symposium. Receding fears of a U.S. slowdown and surging bond yields have gradually eroded the appeal of exchange-traded funds (ETF) backed by traditional safe-haven gold this year, despite sticky inflation. Focus today will be on comments from a few fed officials and US existing home sales data."
Gold opened strongly on the Multi-Commodity Exchange (MCX) on Tuesday, starting at a promising Rs 58,526 per 10 grams and hitting an intraday low of Rs 58,500. Internationally, gold prices are also increasing, hovering at around $1,889.40 per troy ounce.
Silver, another influential player in the commodities market, showed similar performance. It opened at Rs 71,754 per kg on the MCX and recorded an intraday low of Rs 71,631. Internationally, silver traded for roughly $22.73 per troy ounce.
Expert comment provided by Anuj Gupta, Head of Commodity and Currency at HDFC Securities, explains recent market fluctuations. “Yesterday, gold prices closed positively, higher by 0.20%, and closed at 58,490 levels,” Gupta said. “Prices recovered due to the short covering seen on the chart, as prices were in the oversold zone last week.”
He further clarified that profit booking could be seen in the dollar index, which suggests that gold prices are on support levels and a short covering on market prices is expected.
The slowing of the economy after the downgrade of the US and China supports bullions, as it is considered a safe haven in times of economic uncertainty.
Looking at the future, Gupta has identified clear market trends, saying, “Technically, we have strong support at 58,200 levels and then at 58,000 levels, Resistance at 58,700 and then 58,900 levels.” He advises buying on dips around the 58,100-58,200 levels with a stop-loss of 57,900 and aiming for the target of 58,700 to 58,800 levels.
For gold traders in the international market, Gupta predicts that gold may test $1,900 to $1,905 levels. Such trends indicate a promising period for those trading in gold on domestic and international markets.
Amit Khare, Associate Vice President at GCL Broking, said, “October Gold closed at 58490 (0.16%) and September Silver closed at 71662(2.05%), Bullions daily charts are trading at demand zone, any time we can see short covering rally in bullions, Momentum Indicator RSI also indicating the same, So traders are advised to make fresh buy positions in Gold and Silver near given support level one with the stop loss of support level two and book near given resistance levels: Gold October Support 58300/58000 and Resistance 58700/59000. Silver September Support 70900/70000 and Resistance 72000/72500.”
On Tuesday, gold prices fortified their position above recent lows, a surprising outcome considering the U.S. Treasury yields have rocketed to nearly 16-year highs. The reason for this unpredicted movement is the anticipation of this week's central bankers' meeting, where investors are eagerly awaiting clues regarding future interest rates.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "The yield on 10-year Treasury notes hit highs last seen during the Great Financial Crisis in November 2007 as a resilient U.S. economy boosted view the Federal Reserve will keep interest rates higher for longer. Dollar index too continues to hover around their 7 week highs. For an outlook on interest rates, comments from Fed Chair Jerome Powell on Friday will be monitored at a meeting of central bankers at Jackson Hole, Wyoming. Governors of major central banks will present their case, regarding Inflation, growth and overall monetary policy situation, at the Jackson hole symposium. Receding fears of a U.S. slowdown and surging bond yields have gradually eroded the appeal of exchange-traded funds (ETF) backed by traditional safe-haven gold this year, despite sticky inflation. Focus today will be on comments from a few fed officials and US existing home sales data."