Precious metals lost their luster in August after posting a strong close in July, with both gold and silver showing weakness for the month. A stronger dollar and expectations that the Federal Reserve will keep interest rates high in the near future have played a key role in keeping prices in check for the precious metal.
As a result, Comex gold closed down 2.1% at $1,965.9 at the end of August. Comex silver performed relatively well in August. The white metal closed down 0.6 percent at $24.81 an ounce. Echoing the trend in global markets, MCX Gold closed at Rs 59,374 for August, down 1.1%. MCX Silver fell 1.58% last month to close at Rs 75,682 per kg.
Comex gold prices remain confined to the $1,9102,010 range mentioned last month. A breakout of this range will set the tone for the next move. A break above the upper limit of the range at $2,010 would be positive and could push Comex gold to its next target of $2,0402,050. Conversely, a break below $1,910 would be a sign of weakness that could push the price down to $1,8501,860.
Similar to Comex gold, Comex silver has yet to break out of the $22.525.5 range mentioned last month. A breakout of this range will impact the next big move in silver. A break above $25.7 would be a sign of strength, and silver prices could then move towards an upside target of $26.827.5. A break below $22.3 could trigger a drop to $2,121.2. Precious metals lost their luster in August after posting a strong close in July, with both gold and silver showing weakness for the month. A stronger dollar and expectations that the Federal Reserve will keep interest rates high in the near future have played a key role in keeping prices in check for the precious metal.
As a result, Comex gold closed down 2.1% at $1,965.9 at the end of August. Comex silver performed relatively well in August. The white metal closed down 0.6 percent at $24.81 an ounce. Echoing the trend in global markets, MCX Gold closed at Rs 59,374 for August, down 1.1%. MCX Silver fell 1.58% last month to close at Rs 75,682 per kg.
Comex gold prices remain confined to the $1,9102,010 range mentioned last month. A breakout of this range will set the tone for the next move. A break above the upper limit of the range at $2,010 would be positive and could push Comex gold to its next target of $2,0402,050. Conversely, a break below $1,910 would be a sign of weakness that could push the price down to $1,8501,860.
Similar to Comex gold, Comex silver has yet to break out of the $22.525.5 range mentioned last month. A breakout of this range will impact the next big move in silver. A break above $25.7 would be a sign of strength, and silver prices could then move towards an upside target of $26.827.5. A break below $22.3 could trigger a drop to $2,121.2.
In line with global trends, MCX gold and silver prices also remained range-bound in August. MCX Gold must rise above the upper bound of the range at Rs 60,200 or break below the lower bound of the range at Rs 57,500 to trigger a strong directional move.
Above Rs 60,200, the price may rise to the next higher target of Rs 62,500,63,000, while below Rs 57,500 may push the price down to Rs 55,500,56,000. MCX Silver was also confined to a range in August. A break above the current range of Rs 69,50078,500 will determine the next big move in silver. Above Rs 78,500, the price may move up to the Rs 81,00082,500 region, while below Rs 69,400 may push the price to Rs 64,50065,000.
To sum up, the price of precious metals is still within a wide range, breaking through the upper or lower limit of this range will affect the next major price trend. Until then, range-bound and volatile price action may prevail.
(The author is an analyst/trader based in Chennai. The views and opinions in this column are based on analysis of short-term price movements in gold and silver futures on India’s COMEX and multi-commodity exchanges. It does not imply trading or investment advice.)
