Gold traded higher on MCX on August 20 amid a softer US dollar and a decline in bond yields, triggering buying in precious metals and supporting gold prices. August gold futures rose 0.26% to Rs. 1,58,412, and September silver futures declined 1.34% to Rs. 2,39,958.
Meanwhile, Brent crude futures rose 0.24% to $91.84 per barrel. US West Texas Intermediate (WTI) edged higher by 0.11% to $84.48 per barrel.
The CME FedWatch Tool indicates markets are currently pricing in a 67.3% probability that the Fed will keep rates unchanged and a 32.7% chance of a rate hike in September.
24K gold rose by Rs. 430 to Rs. 1,59,270 per 10 grams, while 22K gold also advanced by Rs. 395 to Rs. 1,46,000. By city, Mumbai and Kolkata mirrored prices at Rs. 1,59,270, while Delhi was at Rs. 1,59,420, and Chennai at Rs. 1,59,270.
US gold prices fell on Thursday, as investors booked profits after prices climbed to a two-month high following a surprise US Treasury liquidity-support announcement for long-duration bonds.
Spot gold slipped 0.6% to $4,495.69 per ounce. US gold futures rose 0.2% to $4,553.30. Spot silver gained 0.2% to $67.07 per ounce, platinum dropped 1.3% to $1,802.29, and palladium slid 0.2% to $1,328.06.
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"There was obviously a huge rally (in gold), and there's going to be a degree of digestion in markets after a big move like that," said Ilya Spivak, head of global macro at Tastylive.
"The $4,400 to $4,500 price range has been cleared. If prices hold above this range, the upward momentum is likely to continue."
On MCX, gold has support at Rs. 1,56,650 and Rs. 1,55,500, and resistance at Rs. 1,58,800 and Rs. 1,60,000, while silver has support at Rs. 2,34,400 and Rs. 2,32,000, and resistance at Rs. 2,39,100 and Rs. 2,41,000.