Today, on Friday, August 28, a fall in the prices of gold and silver has been recorded in the bullion market. Just before the much-awaited speech of US Federal Reserve Chairman Kevin Wersh, gold and silver rates have come down in the Multi Commodity Exchange (MCX).
In futures trading on Friday morning, the rate of October contracts of gold on MCX fell by 0.57 percent to Rs 1,58,085 per 10 grams. Similarly, the rate of September futures of silver on MCX was also seen trading at the level of Rs 2,39,320 per kg, down by 0.55 percent.
Effect of softening seen in international market also
Along with the Indian market, a weak trend is also being seen in the American gold market. Just before the US Fed Chairman's speech, the rate of December contracts of US gold futures fell 0.40 percent to $ 4,627.95 per troy ounce.
What are the important support and resistance levels for gold?
According to market experts, at present the level of Rs 1.55 lakh is considered a very important support for the movement of gold. On the upside, the level of Rs 1,64,500 remains very important. Experts say that if gold succeeds in crossing this resistance level, then its price can reach the level of Rs 1,68,000. At present, experts believe that the price of gold will remain in the range of Rs 1,55,000 to Rs 1,61,500.
What are market experts saying?
According to Hemant Sood, Founder and Managing Director of Findoc, at present the level of Rs 1.60 lakh to Rs 1.61 lakh is acting as a strong support zone for MCX Gold. If prices rise from here, it may go from Rs 1.66 lakh to Rs 1.70 lakh level.
Talking about the long term perspective, Hemant Sood also believes that in the coming time, the price of gold may increase from Rs 2.40 lakh to Rs 2.60 lakh.
How is the mathematics of inflation and US Fed working out?
Generally it is seen that when inflation increases in the market, the price of gold increases due to hedging, but this time the situation is a little different. Amidst the ongoing tension in the Middle East, it is feared that the US Federal Reserve may increase interest rates again.
Let us tell you that interest rates in America already remain at a high level, where the current Fed rate is between 3.5 percent to 3.75 percent. In the last Fed Reserve meeting held on July 29, interest rates were kept stable at 3.5 to 3.75 percent. At present, the inflation rate in America remains above the target of 2 percent, which is a matter of concern for the central bank there.