Gold and silver prices climbed on the MCX in early trade on Wednesday, 26 August, amid a crash in crude oil prices and a decline in the US dollar ahead of the US Personal Consumption Expenditures (PCE) price index data.
MCX gold October futures traded 0.16% higher at ₹1,63,146 per 10 grams, while MCX silver September futures were 0.64% up at ₹2,45,700 per kg around 9:10 AM.
International crude oil benchmark Brent crude futures crashed 3% to trade near $86 per barrel, keeping the US dollar index below the 99 mark amid expectations that the Strait of Hormuz could reopen after Iran said it had resumed talks with neighbouring Oman on managing the strategic waterway.
However, the clouds of uncertainty over the Middle East conflict persist as Iran has warned that Washington’s new sanctions on Tehran, announced Monday, will not bring peace to the region.
Meanwhile, China is sending a message of defiance to the Trump administration over Beijing’s economic ties with Tehran. Hours after the US sanctioned dozens of Chinese entities and threatened to target an unspecified “major financial institution” for its dealings with Tehran, Beijing responded by saying its relationship with Iran “should not be disrupted or undermined.” China will take “all necessary measures” to safeguard its interests, Foreign Ministry spokesperson Lin Jian warned.
Investors’ focus is also on the US Federal Reserve’s preferred inflation gauge, the US Personal Consumption Expenditures (PCE) price index for July, which is due at 1230 GMT today, as well as on Fed Chairman Kevin Warsh’s speech at the annual Jackson Hole symposium on Friday.
“Softer oil prices and lower U.S. Treasury yields have eased inflation concerns and provided support to bullion, while talks between Iran and Oman over a temporary maritime corridor through the Strait of Hormuz have raised hopes of easing supply disruptions,” said Ravi Singh, Chief Research Officer at Master Capital Services.
“Lower energy prices could reduce inflationary pressure and give the Federal Reserve greater flexibility on rates. Markets now await the U.S. PCE inflation data and Fed Chair Warsh’s Jackson Hole speech for further policy cues. Meanwhile, renewed demand for gold as a hedge against fiscal and currency risks continues to support the broader bullish trend,” said Singh.
Gold and silver prices: Key levels to watch
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said MCX gold October futures may continue to maintain a positive undertone, but a technical correction is not ruled out.
Trivedi finds ₹1,62,600 a support and ₹1,63,600 a key resistance for MCX gold.
According to Singh, MCX gold continues to trade in a strong bullish structure, forming higher highs and higher lows while holding firmly above its key EMAs.
“Prices are now approaching the next major resistance near ₹1,67,000, while ₹1,60,000 has emerged as the crucial support. As long as prices sustain above this level, the buy-on-dips strategy remains intact, with the broader trend favouring further upside. The positive setup is supported by international gold, which remains close to a three-month high despite a mild pullback,” said Singh.
Manoj Kumar Jain of Prithvifinmart Commodity Research said international gold has support at $4,665 and $4,610, while resistance is at $4,740 and $4,770 per troy ounce, and silver has support at $67.70 and $66.60, while resistance is at $69.80 and $71 per troy ounce in today’s session.
MCX gold, as per Jain, has support at ₹1,62,200 and ₹1,61,000, and resistance at ₹1,63,650 and ₹1,64,400, while silver has support at ₹2,41,400 and ₹2,39,100, and resistance at ₹2,47,000 and ₹2,50,000.
“We have suggested buying in silver around ₹2,44,000 and ₹2,41,000 on Monday with a stop loss below ₹2,37,000 for the target of ₹2,49,000 and ₹2,52,500. Those holding long positions as per the given recommendations are suggested to maintain the given stop loss and book profits around the given target levels,” said Jain.
“We have also suggested buying gold on Tuesday, around ₹1,62,200 and ₹1,61,000 range with a stop loss below ₹1,59,800 for the target of ₹1,64,000 and ₹1,65,000. Those holding long positions in gold are also suggested to strictly follow the given stop loss and book profits near the given target levels,” said Jain.
Read all market-related news here
Read more stories by Nishant Kumar
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
