After recording a strong close in July, precious metals lost their sheen in August, with both gold and silver closing the month on a weak note. The strengthening of the US dollar along with the expectations that the US Federal Reserve will keep interest rates elevated in the near future, played a key role in keeping the precious metal prices under check.
As a result, Comex gold closed 2.1 per cent lower at $1,965.9 at the end of August. Comex silver posted a relatively better performance in August. The white metal closed 0.6 per cent lower to end the month at $24.81 per ounce. Mirroring the trend in the global markets, MCX gold closed on a negative note at ₹59,374 representing a fall of 1.1 per cent in August. MCX silver declined 1.58 per cent last month to settle at ₹75,682 per kilogram.
The price of Comex gold is still confined to the range of $1,9102,010 that was mentioned last month. A breakout from this range would set the tone for the next directional move. A move past the upper end of the range at $2,010 would have positive implications and could push the Comex gold price to the next target of $2,0402,050. On the contrary, a fall below $1,910 would be a sign of weakness and could push the price lower to $1,8501,860.
Similar to Comex gold, Comex silver too is yet to breakout from the range of $22.525.5 range mentioned last month. A breakout from this range would influence the next major move in silver. A move past $25.7 would be a sign of strength and silver price could then head to the upside target of $26.827.5. A fall below $22.3 could trigger a slide to $2,121.2. After recording a strong close in July, precious metals lost their sheen in August, with both gold and silver closing the month on a weak note. The strengthening of the US dollar along with the expectations that the US Federal Reserve will keep interest rates elevated in the near future, played a key role in keeping the precious metal prices under check.
As a result, Comex gold closed 2.1 per cent lower at $1,965.9 at the end of August. Comex silver posted a relatively better performance in August. The white metal closed 0.6 per cent lower to end the month at $24.81 per ounce. Mirroring the trend in the global markets, MCX gold closed on a negative note at ₹59,374 representing a fall of 1.1 per cent in August. MCX silver declined 1.58 per cent last month to settle at ₹75,682 per kilogram.
The price of Comex gold is still confined to the range of $1,9102,010 that was mentioned last month. A breakout from this range would set the tone for the next directional move. A move past the upper end of the range at $2,010 would have positive implications and could push the Comex gold price to the next target of $2,0402,050. On the contrary, a fall below $1,910 would be a sign of weakness and could push the price lower to $1,8501,860.
Similar to Comex gold, Comex silver too is yet to breakout from the range of $22.525.5 range mentioned last month. A breakout from this range would influence the next major move in silver. A move past $25.7 would be a sign of strength and silver price could then head to the upside target of $26.827.5. A fall below $22.3 could trigger a slide to $2,121.2.
Mirroring the global trend, MCX gold and silver price too remained rangebound in August. MCX gold has to move above the upper end of the range at ₹60,200 or fall below the lower end of the range at ₹57,500 to trigger a strong directional move.
Above ₹60,200, the price could head to the next higher target of ₹62,50063,000 while a fall below ₹57,500 could push the price lower to ₹55,50056,000. MCX silver too was confined to a range in August. A breakout from the present range of ₹69,50078,500 would determine the next big move in silver. Above ₹78,500, the price could head to ₹81,00082,500 zone, while a fall below ₹69,400 could push the price to ₹64,50065,000.
To summarise, precious metals’ prices are still stuck in a broad range and a breach of the upper or lower end of this range would influence the next big move in prices. Until then, rangebound and volatile price action is likely to prevail.
(The author is a Chennai based analyst/trader. The views and opinion featured in this column is based on the analysis of shortterm price movement in gold and silver futures at COMEX & Multi Commodity Exchange of India. This is not meant to be a trading or investment advice.)