Investors looked forward to a speech by US Federal Reserve Chair Jerome Powell at the Jackson Hole symposium for clues on interest rate hikes and the health of the economy.
Gold futures on
were trading higher as they rose 0.32 per cent or Rs 167 to Rs 51,606 per 10 grams. Silver futures jumped 0.66 per cent or Rs 363 to Rs 55,300 per kg.
Investors are bracing for the Fed to double down on its commitment to crush inflation and expect Powell to deliver an aggressive tightening message on Friday.
Gold demand in India improved last week as domestic prices dropped to a more than two-week low, while volumes were sombre in other Asian centres.
In the spot market, the highest purity gold was sold at Rs 51,630 per 10 grams while silver was priced at Rs 55,224 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have dropped more than Rs 700 per 10 grams in the last two weeks, whereas silver tumbled about Rs 3,200 per kg during the same period under review.
“Gold prices may see some fresh trigger after the speech of Fed chair during Jackson Hole symposium. The tone of Powell towards the economy and further rate hike will decide the fate of gold trend,” said Ravi Singh, Vice President and Head of Research, ShareIndia.
US second-quarter GDP second estimate and July consumer spending data will be in focus, added. The current formation of gold is suggesting a bearish bias and sell high strategy to be followed till the speech, advised Singh.
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,730 and resistance at $1,760 per ounce. MCX Gold October support lies at Rs 51,100 and resistance at Rs 51,700 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities),
Spot gold was 0.1 per cent higher at $1,753.01 per ounce, as of 0110 GMT. US gold futures were up 0.3 per cent at $1,766
Spot silver eased 0.2 per cent to $19.13 per ounce, platinum inched down 0.1 per cent to $876.16, and palladium rose 0.5 per cent to $2,044.19.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)