Gold prices fall as investors await US Fed policy minutes; may touch Rs 54,500 per 10 gm in coming week

August 19, 2020

Mumbai-India (Aug 19)  Gold prices fell on Wednesday as investors awaited minutes from the US Federal Reserve’s last policy meeting. Analysts believe that an intermittent profit booking cannot be ruled out on signs of easing US-China trade tensions and optimism around COVID-19 vaccine. At 10 AM, gold October futures were trading 0.60 per cent or Rs 321 down at Rs 53,250 per 10 gm, while silver September futures dropped 1.62 per cent or Rs 1,128 to rule at Rs 68,377 per kg on MCX in Wednesday’s session. Yesterday, news reports came in that Senate Republicans are planning to introduce a scaled-back coronavirus relief package. The slimmed-down bill will provide a $300 a week in federal unemployment benefits, which supported gold prices. “US lawmakers remain locked in a stalemate over a potential new coronavirus stimulus deal and any breakthrough in reaching another stimulus deal would lead to a decline in precious metals. Any positive development on the vaccine front would also boost risk sentiment and keep the pressure on gold prices,” Bhavik Patel, Senior Technical Research Analyst at Tradebulls Securities, told Financial Express Online.

Patel added that as long as yields stay below 1%, gold prices will remain positioned to the upside. Bouts of volatility and pullbacks in gold prices will occur from time to time. Globally, gold prices were trading firm with spot gold up 0.1 per cent at $2,002.12 per ounce, while US gold futures eased 0.1 per cent to $2,011.60 per ounce. Among other precious metals, silver rose 0.6 per cent to $27.82 per ounce, platinum gained 0.2% to $958.33, and palladium edged 0.1% to $2,190.98. “A direct break of $2020 is required to continue the bullish outlook, else intraday bias is largely on the downside. However, major downside moves are likely only if prices break $1970,” said Hareesh V, Head of Commodity Research at Geojit Financial Services.


Silver Phoenix Twitter                 Silver Phoenix on Facebook