Gold and silver prices in India fell today (August 27, 2020) on profit booking by traders ahead of US Fed chairman Jerome Powell's address. Upbeat equities also pushed risk-on sentiment, driving investors away from safe-haven investments.
On the MCX, October gold futures in the afternoon session traded down by 0.59% or Rs. 307 at Rs. 51472 per 10 gm, while silver also plunged by 0.47% or Rs. 319 to Rs. 67210 per kg. In the previous trading session, gold prices showed recovery after losing for five straight days, with gold futures jumping Rs. 900 per 10 gm while silver also scaled higher by Rs. 3500 per kg.
International gold rates
Globally, gold prices were almost steady on weaker US dollar. Spot gold traded at $1952.11 per ounce. Silver also inched lower 0.8% .8% to $27.30 per ounce, while platinum surged 0.6% to $934.29.
The dollar index dropped 0.2% to an almost one-week low against its rival currencies.
Traders in the gold market are eyeing Fed Reserve Chairman Jerome Powell's address during the virtual Jackson Hole symposium due later today which will offer clues on the US central bank's monetary policy and inflation related strategy going forward.
Also, gold prices are being supported owing to return of geo-political crisis with Beijing firing missiles into the South China Sea and the US imposing sanctions on various Chinese companies associated with the disputed region. Reports further suggest that Republicans in the US Congress are considering a narrow stimulus bill against the fall-out of coronavirus which can be put forth before policymakers as early as this week.
Outlook for gold prices going ahead
"Gold may continue to witness choppy trade unless we get more clarity on Fed's stance and thereby trend in US dollar however we may see buying interest emerging at lower levels amid persisting virus concerns, growth worries and US-China differences over various issues," the Kotak Securities said. Also, the brokerage added that price of gold is trending down on weak demand from consumers which is imminent from huge discounts being offered in the top gold markets of China and India.