1 min read.Updated: 23 Aug 2021, 09:34 AM ISTLivemint
Though gold rates have recovered from 4-month lows hit earlier this month, they have struggled for direction in past few sessions
Gold prices today struggled for direction with futures on MCX up marginally to ₹47,208 per 10 gram. The precious metal has traded in a very narrow range for fourth day in a row amid a stronger dollar. Silver futures on MCX today inched 0.4% higher to ₹61951 per kg. In the previous session, gold had settled flat while silver had declined 0.7%.
After rebounding from a four-month low of ₹45,600, hit earlier this month, gold rates have struggled in the past few sessions. Gold had hit a record high of ₹56,200 last year.
In global markets, gold declined marginally as a stronger dollar dented the precious metal's allure for holders of other currencies. Spot gold fell 0.1% to $1,779.12 per ounce while the dollar index traded near the 9-1/2-month highs of 93.33. However, losses in gold were capped amid growing concerns over the economic fallout from the spread of the Delta coronavirus variant.
Among other precious metals, silver rose 0.2% to $23.05 per ounce, while platinum firmed 0.3% at $998.85.
“As long as $1792 remains caps the upside, expect selling pressure to continue the day for gold. It required to break $1815 to continue recovery upticks," says Geojit in a note.
On gold traders radar will be Fed's annual economic symposium in Jackson Hole, Wyoming, later this week. The event will take place on August 27 virtually and Fed chairperson Jerome Powell will give a speech at the event on the economic outlook.
"US Federal Reserve Chair Jerome Powell will speak on “the economic outlook" at next week’s Jackson Hole, Wyoming symposium, where we could expect him to lay out a clearer roadmap on the central bank’s taper plans. Broader range on COMEX could be between $1770- 1820 and on the domestic front prices could hover in the range of ₹46,965- 47,580," said Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services.
On silver, Geojit, says, “Consistent trades above $23.90 is required to lift prices higher. Else, there are chances of range bound trading with mild negative bias."