New Delhi — Gold prices edged lower on Friday as investors awaited comments from U.S. Federal Reserve Chair Kevin Warsh at the Jackson Hole economic symposium for signals on the central bank’s interest-rate outlook.
Gold and silver futures initially opened nearly 0.4% lower on the Multi Commodity Exchange, though both recovered much of their early losses.
MCX gold futures for October delivery were down 0.04% at Rs 1,58,835 per 10 grams as of 12:35 p.m. after opening sharply lower.
Silver futures for September delivery, meanwhile, gained 0.82%, or Rs 2,023, to Rs 2,42,674 per kilogram.
In the physical market, 24-carat gold was priced at Rs 1,58,226 per 10 grams around midday, down from Rs 1,58,386 on Thursday, according to data from the India Bullion and Jewellers Association.
Gold prices have declined by nearly Rs 5,000 per 10 grams over the past four sessions, with appreciation in the rupee adding further pressure.
Internationally, spot gold fell 0.5% to $4,576.30 an ounce in early Friday trading, while U.S. gold futures declined 0.8% to $4,629.
Investors are closely watching for clues about the Federal Reserve’s next moves on interest rates. Markets have reduced the probability of a September rate hike to about 36%, according to the CME FedWatch Tool, while putting the likelihood of a December increase at around 72%.
The latest U.S. inflation data has added uncertainty to the outlook. The Personal Consumption Expenditures price index rose 3.7% in the 12 months through July, unchanged from June and slightly above economists’ forecast of 3.6%.
Analysts said MCX gold has support in the Rs 1,57,000 to Rs 1,57,600 range, with resistance between Rs 1,59,500 and Rs 1,60,000.
MCX silver has support between Rs 2,39,000 and Rs 2,40,000, while resistance is expected in the Rs 2,44,000 to Rs 2,45,000 range. (Source: IANS)
