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Gold traded lower on MCX on August 28 as investors booked profits ahead of US Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole symposium later in the day. October gold futures fell 0.51% to Rs. 1,58,189 per 10 grams, and September silver futures declined 0.45% to Rs. 2,39,575.
Meanwhile, Brent crude futures fell 0.43% to USD 89.31 per barrel. US West Texas Intermediate (WTI) edged lower by 0.36% to USD 83.23 per barrel.
The CME FedWatch Tool indicates markets are currently pricing in a 66.3% probability that the Fed will keep rates unchanged and a 33.7% chance of a rate hike in September.
24K gold fell by Rs. 316 to Rs. 1,59,820 per 10 grams, while 22K gold also declined by Rs. 290 to Rs. 1,46,500. By city, Mumbai and Kolkata mirrored prices at Rs. 1,59,820, while Delhi was at Rs. 1,59,870 and Chennai at Rs. 1,59,820.
US gold prices slipped on Friday as market participants closely awaited remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. Spot gold fell 0.5% to USD 4,576.30 per ounce. US gold futures eased 0.8% to USD 4,629.00.
Spot silver fell 1% to USD 68.54 per ounce and palladium declined 0.8% to USD 1,339.84. Platinum was down 0.6% at USD 1,834.83.
Also Read: Why Gold Prices Rise During Economic Uncertainty: Key Factors Investors Should Know
The case for Warsh to lean hawkish is greater than the case for him not to remain dovish, and that could see gold retreat further from its cycle highs in the near term, said Matt Simpson, a senior analyst at StoneX.
"But I suspect any such dip will be viewed favorably by bulls who missed out on the first phase of the rally - and are keen to have another crack at USD 5,000," he said.
Ravi Singh, Chief Research Officer at Master Capital Service, said that MCX gold prices declined, as the formation of a double-top-like pattern near the highs suggests that prices may consolidate or retrace towards Rs. 1,55,000, which also coincides with the rising 21-day EMA and could offer a good buying opportunity.
On the upside, Singh said Rs. 1,64,500 remains the key hurdle, and a sustained breakout above this level could attract fresh buying towards Rs. 1,68,000. Until then, prices may remain range-bound.
