Gold Prices in India Today Resistance Zone ₹38300 Level in Futures Markets

Gold prices in India today resistance zone ₹38,300 level in futures markets while silver struggled. On MCX, October gold futures were down slightly at ₹37,960. Gold futures had hit a new high of ₹38,666 last week.

In spot market, gold neared ₹39,000 on Thursday, extending its record run. Silver prices however showed some weakness as September futures were down 0.15% on MCX. A similar trend was seen in global markets, with gold holding around the key level of $1,500 an ounce, amid uncertainties around monetary policy, trade and geopolitical tensions.

A weak rupee, which today slid past 72 a US dollar, also supported gold price India as the country imports bulk of its requirement. Domestic gold prices are up around 20% so far this year amid a global rally.

Meanwhile, gold-backed ETFs continued to see a surge in holdings as recession fears increased the safe-haven appeal of the yellow metal. According to a recent Bloomberg report, total known ETF holdings expanded to 2,424.9 tons as on Wednesday, about 1,000 tons higher since holdings bottomed in early 2016.

Gold investors are keenly waiting on a speech by US Federal Reserve Chairman Jerome Powell later in the day at a gathering of central bankers in Jackson Hole. They will look for clues on future policy easing, after the Fed last month cut rates for the first time since the financial crisis. Lower interest rates increase the appeal of non-interest yielding asset classes like gold.

Gold, analysts say, may continue to trade in a broad range unless there is more clarity on US-China trade issues and monetary policies of major central banks.

Financial markets remained nervy as in the US bond market, the closely watched two-year, 10-year Treasury yield curve briefly moved back into inversion overnight amid worries of a sharp global downturn. An inversions in the US yield curve has presaged several past US recessions.

Earlier this week veteran investor Mark Mobius said gold’s long-term prospect is “up, up and up” as leading central banks loosen monetary policy. Another famed investor Ray Dalio gave an endorsement to buying gold. They join analysts at Goldman Sachs and UBS Group who also remain positive on gold.