Gold traded higher on MCX on August 27, supported by a weaker US dollar amid fears of currency debasement. October gold futures rose 0.33% to Rs. 1,60,191 per 10 grams, and September silver futures advanced 0.40% to Rs. 2,40,734.
Meanwhile, Brent crude futures fell 0.41% to USD 87.45 per barrel. US West Texas Intermediate (WTI) edged lower by 0.49% to USD 81.83 per barrel.
The CME FedWatch Tool indicates markets are currently pricing in a 64.1% probability that the Fed will keep rates unchanged and a 35.9% chance of a rate hike in September.
24K gold fell by Rs. 77 to Rs. 1,62,980 per 10 grams, while 22K gold also declined by Rs. 70 to Rs. 1,49,400. By city, Mumbai and Kolkata mirrored prices at Rs. 1,62,980, while Delhi was at Rs. 1,63,130 and Ahmedabad at Rs. 1,63,030.
US gold prices rose on Thursday as currency debasement concerns lingered, while attention shifted to remarks from US Federal Reserve Chair Kevin Warsh this week.
Spot gold was up 0.8% at USD 4,630.09 per ounce. US gold futures rose 0.7% to USD 4,685.50. Spot silver gained 1.7% to USD 69.28, platinum rose 1.1% to USD 1,848.57 and palladium firmed 0.5% to USD 1,334.49.
Also Read: Why Gold Prices Rise During Economic Uncertainty: Key Factors Investors Should Know
“The dollar-debasement narrative, coupled with concerns about the US budget deficit, remains supportive of gold in the medium term,” said Kelvin Wong, a senior market analyst at OANDA.
"The market is awaiting the speech for greater clarity on how the Fed will navigate the current economic landscape. If he does not provide specific forward-looking monetary policy guidance, current market pricing for rate hikes is likely to remain largely unchanged," Wong added.
Internationally, gold has support at USD 4,610 and USD 4,574 while resistance is at USD 4,694 and USD 4,720 per troy ounce, and silver has support at USD 67.10 and USD 66, while resistance is at USD 68.80 and USD 70 per troy ounce.
On MCX, gold has support at Rs. 1,58,800 and Rs. 1,57,700, and resistance is at Rs. 1,60,600 and Rs. 1,61,500, while silver has support at Rs. 2,37,000 and Rs. 2,34,400 and resistance is at Rs. 2,42,000 and Rs. 2,44,500.