Gold price edge lower on US talks with European, Ukrainian leaders; likely to fall below Rs 99k

Gold prices edged lower on Tuesday as gold October futures prices at MCX were trading at Rs 99,240/10 grams, lower by Rs 161 or 0.16%, as investor focus shifted towards the US Federal Reserve’s annual Jackson Hole symposium and President Donald Trump’s discussions with European and Ukrainian leaders.

Mirroring a similar sentiment, silver September contracts were also trading lower today at Rs 1,12,994/kg. The prices of the white metal were down by Rs 598 or 0.53%.

On Monday, gold and silver settled on a weaker note in the domestic market and on a mixed note in the international markets. Gold October futures contract settled at Rs 99,401 per 10 grams with a loss of 0.44% and silver September futures contract settled at Rs 1,13,592 per kilogram with a loss of 0.31%.


During a White House meeting with Ukrainian President Volodymyr Zelensky, attended by European and NATO officials, Trump expressed optimism that the war in Ukraine could soon come to an end. Following the talks, he stated that the United States would be “involved” in efforts to maintain the ceasefire and added that he planned to call Russian President Vladimir Putin.

Meanwhile, anticipation continued to build around the Federal Reserve’s monetary policy outlook. Investors are closely watching for signals of a potential interest-rate cut in September, with particular attention on Federal Reserve Chair Jerome Powell’s upcoming remarks at Jackson Hole, alongside the release of minutes from the Fed’s most recent meeting.

“However, the possibility of the Fed rate cuts and uncertainty due to the U.S. trade tariffs are supporting gold and silver prices at lower levels. We expect gold and silver prices to remain volatile this week amid possibility of ceasefire deal in the Russia-Ukraine, volatility in the rupee and ahead of the Fed Chairman’s speech and gold is expected to trade in the range of $3,320-3,452 per troy ounce and silver is expected to trade in the range of $36.80-38.70 per troy ounce this week,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.

Today, the US Dollar Index, DXY, was hovering near the 98.08 mark, falling 0.09, or 0.09%.

“Gold seems to continue its downward trajectory after sustaining below $3400,” added Renisha Chainani, Head - Research at Augmont.

How to trade gold?

Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:

• Gold has support at Rs 99,100-98,660 and resistance at Rs 99,770-1,00,100
  
• Silver has support at Rs 1,12,800-1,12,000 and resistance at Rs 1,14,200-1,15,115
  

Jain expects gold and silver to trade in a range with a negative bias. He suggests waiting for some stability in the market before taking fresh positions in gold and silver.

Meanwhile, Renisha Chainani stated that the next target for gold is $3340 (~Rs 98,500), while $3445 (~Rs 1,00,500) remains the resistance. Silver prices are expected to consolidate in a range of $37.5 (~Rs 1,12,500) to $39(~Rs 1,15,000).

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 57,464/8 grams, while pure gold (24 carat) prices stand at Rs 61,240/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 57,208/8 grams, while pure gold (24 carat) prices stand at Rs 61,016/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 57,032/8 grams, while pure gold (24 carat) prices stand at Rs 60,792/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 56,792/8 grams, while pure gold (24 carat) prices stand at Rs 60,560/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)