Gold and silver prices today: Yellow metal trades steady after third straight weekly dip

Gold prices opened on the Multi Commodity Exchange (MCX) on Monday at Rs 58,420 per 10 grams and hit an intraday low of Rs 58,385. In the international market, prices hovered around $1,889.40 per troy ounce. Meanwhile, silver opened at Rs 70,425 per kg and hit an intraday low of Rs 70,407 on the MCX. The price hovered around $22.73 per troy ounce in the international market. Silver prices were closed positively, increased by 0.37% and closed at 70235 levels. 

Last week, gold prices corrected sharply by 0.90% and closed at 58375 levels. In the domestic market, it is trading at 6-week low levels; in the international market, it is trading at 5-month low levels at $1888 per ounce. 

Anuj Gupta, Head of Commodity and Currency, HDFC Securities, said, “The dollar is trading at six-week high at 103.35 levels, as strong U.S. economic readings and hawkish signals from the minutes of the Fed’s July meeting pushed up bets that U.S. rates will remain higher for longer. Gold is now losing momentum as safe-haven demand and investment fade out from the markets. But factors like inflation and downgrading of the U.S. & China are still in place, which fuel the gold. Expecting festival demand may also increase in India.” 

He said, “Technically, the trend of gold and silver are sideways, and prices are facing strong resistance on higher levels. Gold has strong support at 58000 and 57500 levels and resistance at 58700 and 59200 levels. Silver has strong support at 68400 levels and resistance at 72000 levels. From the trading point of view, traders can buy gold around 58000 levels with a stop-loss of 57500 levels with a stop-loss of 58700 and then 59000 levels. Silver can buy around 69500 levels with a stop-loss of 68400 levels for the target of 71500 to 72000 levels. Closing above on resistance levels will lead the gold and silver further.” 

Gold traded steady after marking its third straight weekly dip as recent sound U.S. economic data raised bets for interest rates staying higher for longer. 

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Investors will focus on U.S. Federal Reserve chair Jerome Powell's speech on Friday, as central bankers worldwide assemble in Jackson Hole for their annual conference. CME Fed-Watch tool continues to show more than 85% probability for a pause in the September meeting while the Fed officials prepare the market for more rate hikes to curb Inflationary concerns. Better-than-expected economic data and rising interest rate expectations support an up-move in the Dollar Index and U.S. Yields- which continue to hover around 7-week and 10-month highs, respectively. Premiums on physical gold in China jumped to the highest level since December 2016 this week as economic worries spurred fresh safe-haven demand. Along with comments from Fed officials, the Jackson Hole symposium focus also shifts to China's economic concerns and steps taken by the officials to support the economy. Volatility could be a bit lower as no major economic data are scheduled from the U.S. today." 

Amit Khare, Associate Vice President at GCL Broking, said, "October Gold closed at 58375(0.14%) and September Silver closed at 70235(0.32%). Bullions daily charts are trading at the demand zone. Any time we can see short covering rallies in bullions. Momentum Indicator RSI also indicates 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 69700/69000 and Resistance 70600/71000."