Gold Up As Fed’s New Policy Framework Suggest Interest Rates To Remain Near Zero

  • Commodities Analysis

Gold yesterday settled up by 0.49% at 51701 as the U.S. Federal Reserve's new policy framework that suggested interest rates would remain near zero for some time. The greenback took a big spill as market participants digested what was coming out of the Jackson Hole Symposium, and the knock-on benefits to gold are still being felt.
 
 
Investors seeking to buy the metal as a hedge against possible inflation and currency debasement due to unprecedented money printing by central banks. Dealers in India offered the highest discounts on gold in five months this week as a dip in domestic prices failed to revive demand, while in top consumer China prices remained at a sharp discount to the international market.
 
 
In India discounts of $43 an ounce were offered over official domestic prices, the highest since the last week of March, versus $20 discounts last week. Chinese discounts eased to $60-$70 an ounce against international spot gold rates , which traded in a $1,902.22-$1,976.03 range, from last week's $80-$70.
 
 
Russia produced 138.10 tonnes of gold from January to June, up from 135.33 tonnes during the same period in 2019, the finance ministry said. The country also produced 437,30 tonnes of silver during the first six months of the year, a figure lower than the 457.45 tonnes produced over the same period last year.
 
 
Technically market is under short covering as market has witnessed a drop in open interest by -1.35% to settled at 14639 while prices up 253 rupees, now Gold is getting support at 51483 and below the same could see a test of 51264 levels, and resistance is now likely to be seen at 51898, a move above could see prices testing 52094.
 
 
Trading Ideas:
#             Gold trading range for the day is 51264-52094.
#             Gold gained as the U.S. Federal Reserve's new policy framework that suggested interest rates would remain near zero for some time.
#             The greenback took a big spill as market participants digested what was coming out of the Jackson Hole Symposium, and the knock-on benefits to gold are still being felt.
#             Dealers in India offered the highest discounts on gold in five months as a dip in domestic prices failed to revive demand

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