Gold Prices Rebound as Traders Eye US Inflation Data
Gold and silver prices rebounded on the Multi Commodity Exchange (MCX) after a three-day losing streak, despite expectations of higher interest rates weighing on demand for non-yielding assets.
The US personal consumption expenditures (PCE) price index is due to be released later in the day, while the nonfarm payrolls report is scheduled for release on Friday. According to the CME FedWatch Tool, traders see a 50% probability of a Fed rate hike in October and a 92% chance of a hike in December.
Manoj Kumar Jain of Prithvi Finmart advised waiting for some stability in the markets before taking fresh positions in gold and silver. He noted that gold has support at $4,164-4,140 per troy ounce, while resistance is placed at $4,220-4,250. For silver, support is seen at $60.60-60.00, with resistance at $62.40-63.00 per troy ounce.