Bullion counter may witness short covering after yesterday fall as movement of greenback and US Chicago PMI data to give further direction to the prices. Gold can move in range of 30700-31000 while silver can move in range of 43800-44500 in near term.
Gold is headed for the first monthly decline since May as investor’s price in the prospect of higher U.S. borrowing costs by the end of the year and slowing purchases of bullion-backed exchange-traded funds.
Gold’s drop this month would be the first for August since 2009, as the metal generally climbs on jewelry demand ahead of the wedding and festival season in India, the top consumer along with China. The pullback has followed hawkish comments by Federal Reserve officials, which have increased bets on monetary tightening and boosted the dollar.
Courtesy: Smc Comtrade