Gold prices in Indian on the Multi Commodity Exchange (MCX) traded higher on Monday, following gains in international bullion prices, amid a weak US dollar.
MCX gold rate for October futures contracts traded higher by Rs 908, or 0.56%, at Rs 1,63,346 per 10 grams.
In the global markets, gold prices hit their highest levels in more than three months. Investors now await key US inflation data and a speech later this week by Federal Reserve Chair Kevin Warsh.
Spot gold price rose 0.73% to $4,636.82 per ounce, after hitting its highest level since May 15 earlier in the session. Last week, gold prices rallied more than 5% last week. US gold futures rose 0.27% to $4,693.11 an ounce.
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“Softer dollar expectations, safe-haven demand and global interest-rate cues continue to support precious metals. For the week ahead, we expect the outlook to remain cautiously bullish, though elevated prices could lead to some profit-booking and volatility,” said Darshan Desai, CEO, Aspect Bullion & Refinery.
Investors now shift focus towards the July Personal Consumption Expenditures (PCE) price index data, the US Federal Reserve's preferred inflation gauge, on Wednesday, August 26, and the US Fed Chair Warsh's speech at the annual gathering in Jackson Hole, Wyoming, this week for cues on the Fed's interest rate trajectory.
Gold Rate Outlook
Desai expects gold price to remain well supported amid geopolitical and macroeconomic uncertainties, while silver could see continued interest given its investment and industrial demand.
“For Indian consumers, a staggered buying approach may be more prudent at current levels rather than chasing sharp rallies,” said Desai.
Technically, MCX gold price has immediate resistance at Rs 1,64,500 – Rs 1,65,000, and a break above targets next resistance at Rs 1,67,000 - Rs 1,67,700, noted Ponmudi R, CEO, Enrich Money,
“Immediate support is at Rs 1,60,600 - Rs 1,60,000, with next support at Rs 1,58,500 - Rs 1,58,000. RSI at 76.98, deeply overbought, confirms very strong momentum, though the near-vertical run-up leaves the market vulnerable to a sharp pullback or consolidation near highs,” said Ponmudi R.
According to him, the bias stays strongly constructive above Rs 1,62,000, with a hold needed to extend gains toward Rs 1,65,000, while a slip below Rs 1,62,000 would signal a sharper correction.
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