Daijiworld Media Network - New Delhi

New Delhi, Aug 28: Gold and silver futures opened nearly 0.4 per cent lower on the Multi Commodity Exchange (MCX) on Friday but recovered much of their losses as investors awaited remarks from US Federal Reserve Chair Kevin Warsh at the Jackson Hole economic symposium.

Gold futures for October delivery opened in the red on MCX and were down 0.04 per cent at Rs 1,58,835 per 10 grams on an intraday basis as of 12.35 pm.

Silver futures for September delivery, however, gained 0.82 per cent, or Rs 2,023, to Rs 2,42,674 per kg.

At midday, the price of 10 grams of 24-carat gold stood at Rs 1,58,226, down from Rs 1,58,386 on Thursday, according to data from the India Bullion and Jewellers Association (IBJA).

Gold prices have declined by nearly Rs 5,000 per 10 grams over four sessions, with the appreciation of the rupee also adding pressure.

In international markets, spot gold fell 0.5 per cent to $4,576.30 per ounce in early trade on Friday, while US gold futures eased 0.8 per cent to $4,629.

Market participants are awaiting indications about the US central bank’s interest-rate outlook. According to the CME FedWatch Tool, traders have reduced the probability of a US rate hike in September to around 36 per cent, while the probability of a December hike remains near 72 per cent.

The outlook has been further complicated by US inflation data. The Personal Consumption Expenditures (PCE) price index rose 3.7 per cent in the year through July, unchanged from June and slightly above economists’ forecast of 3.6 per cent.

Analysts said MCX gold has support at Rs 1,57,600-Rs 1,57,000, while resistance is seen in the Rs 1,59,500-Rs 1,60,000 zone.

For MCX silver, support is placed at Rs 2,40,000-Rs 2,39,000, while resistance is expected at Rs 2,44,000-Rs 2,45,000.