Gold Silver Reports — MCX Gold Expected to Trade 31207-31591 Levels — Gold on MCX settled down -0.24% at 31404 snapping a week-long streak of gains in tight trade as hawkish comments from U.S. Federal Reserve officials renewed bets on a U.S. rate hike this year while contradicting comments from others curbed losses. San Francisco Fed President John Williams joined a growing chorus of his colleagues signalling support for a U.S. interest rate hike in coming months.
New York Fed President William Dudley reinforced his confidence in a possible rate hike for a second time in the week. Dallas Fed President Robert Kaplan, however, saw limited room to man oeuvre on rates. Meanwhile, European Central Bank rate setters agreed not to discuss any policy change at their July meeting and to keep market hopes for more stimulus in check, minutes showed. Reports showed the number of Americans filing for unemployment benefits fell more than expected last week, while manufacturing activity in the U.S. Mid-Atlantic region saw a mild improvement this month. Physical gold demand in Asia improved modestly this week as consumers returned to the market ahead of upcoming festivals in India and China when demand is usually high.
In India, the world’s second biggest gold consumer, discounts narrowed as jewellers started buying for the festive season. Investors were offering a discount of up to $52 an ounce over the global spot benchmark, down from up to $60 last week. India’s gold demand may rise in the second half of 2016 after falling to the lowest in seven years in the first half as monsoon rains spur rural demand during the peak festive season, the World Gold Council said on Aug. 11. Technically now Gold is getting support at 31306 and below same could see a test of 31207 level, and resistance is now likely to be seen at 31498, a move above could see prices testing 31591. — Neal Bhai Reports