Gold Prices Fall Below Rs. 52000 Even As Global Rates Surge On US Jobless Data

Gold prices in India in the the morning session on August 21, 2020 opened a shade higher against previous close in tandem with the recovery in rates in gold prices internationally. On the MCX, October gold futures fell below Rs. 52000 per 10 gm level and at around 4:19 pm quoted lower by 0.62% or Rs. 323 at Rs. 51828 per 10 gm. Silver too in line at around the same time fell marginally by 0.03% or Rs. 22 to Rs. 67573 per kg.

Gold Prices Fall Below Rs. 52000 Even As Global Rates Surge On US Jobless Data

International gold rates

In the global market, gold prices saw a fresh push as dollar weakened on weak US jobs data with jobless claims rising. In the previous session, gold prices fell by over 3%.
Spot gold was up 0.4% at $1,949.83 per ounce by 0030 GMT. Gold for the week has risen in price by nearly 0.5% after seeing its worst fall in a week in five months. U.S. gold futures rose 0.6% to $1,958.30.

Traders in the market are watchful of the manufacturing and services PMI data due to be released by major economies, and any sharp deviation on the downward side, shall lend support to the bullion.

"An unexpected rise in jobless claims last week, volatility in equities, increasing worry over rising Covid cases and other uncertainties are supportive for metal prices although rebound in yields from the lows and rise in dollar index limited gains for the same. On other hand, to and fro comments between the US and China continue to keep the market cautious. No new high-level trade talks are scheduled but both the sides remain in touch about complying with the phase one deal," said Navneet Dama Damani, vice-president (commodities research) at Motilal Oswal Financial Services.

"Additionally, mounting tensions between the US and Iran also lent support following the US announcement to restore full sanctions on Iran," said Sriram Iyer, senior research analyst at Reliance Securities

Prices are likely to remain on the upside, said Tapan Patel, senior analyst (commodities) at HDFC Securities. "Gold prices are expected to keep the firm trading range in the coming week ahead of the Jackson Hole meeting as investors will eye for the comments from US Fed Chair Jerome Powell. MCX Gold October future may trade sideways to up with resistance at Rs 53,500 per 10 gm and support at Rs 51,200 per 10 gm," he said.

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