Gold Prices Climb Amid Weaker Dollar and Inflation Concerns
Gold and silver prices rose on India's Multi Commodity Exchange (MCX) on Thursday, supported by a weaker US dollar amid concerns of currency debasement. MCX gold October futures were up 0.28% at ₹1,60,108 per 10 grams, while MCX silver September contracts gained 0.41% to ₹2,40,625 per kg.
The uptick in gold and silver prices is attributed to growing expectations of a pause on rate hikes by the US Federal Reserve in September, as well as the metal's safe-haven appeal amidst inflation concerns. The Core PCE (Personal Consumption Expenditure) rose 0.2% month-on-month and 3.3% year-on-year in July, keeping inflation above the Fed's 2% target for the 65th straight month.
Analysts are closely watching the upcoming remarks of US Federal Reserve Chair Kevin Warsh at the annual Jackson Hole symposium in Wyoming on Friday for further cues on inflation and interest rate trajectory. With fiscal concerns and elevated debt, dips in gold remain an opportunity while the larger trend stays bullish, according to Ravi Singh, Chief Research Officer at Master Capital Services.
Key levels to watch: MCX gold prices may see a corrective move towards ₹1,56,000 before attempting the next leg higher, said Singh. Gold has support at $4,610 and $4,574 while resistance is at $4,694 and $4,720 per troy ounce, according to Manoj Kumar Jain of Prithvifinmart Commodity Research.