Gold prices drop ahead of Jerome Powell's Jackson Hole speech; experts highlight key MCX levels to watch

Gold price today: Gold traded lower in the domestic futures market on Friday (August 22) morning on a stable dollar and amid caution ahead of US Fed Chair Jerome Powell's speech at the Jackson Hole symposium. MCX Gold October 3 contracts were down 0.12 per cent at ₹99,311 per 10 grams around 9:15 AM. MCX Silver September 5 contracts were down 0.15 per cent at ₹1,13,536 per kg at that time.

The dollar index rose about 0.15 per cent during the session, trading near a two-week high. This made bullion expensive in other currencies and weighed on its demand.

The focus is on Powell's speech in Jackson Hole. This will be his last Jackson Hole address as the Fed Chair, as his term expires in May 2026. He will speak at 10 AM EDT (7:30 PM Indian Standard Time).

Powell's hints on a potential rate cut in September will be a significant boost for gold prices.

The US labour market is flashing stress signals. Last week, US jobless claims jumped by the most in nearly three months.

The US Labor Department data showed that initial claims for unemployment benefits rose by 11,000 to a seasonally adjusted 2,35,000 for the week ended August 16. This was the largest increase since late May.

While the job market is softening, US inflation remains above the central bank's 2 per cent target, creating a complex situation for the US Fed.

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $3,370-3,350, while resistance is at $3404-3424 per troy ounce, and silver has support at $37.70-37.40, while resistance is at $38.40-38.80 per troy ounce in today’s session.

MCX Gold has support at ₹99,100-98,650 and resistance at ₹99,720-1,00,100, while silver has support at ₹1,13,000-1,12,200 and resistance at ₹1,14,400-1,15,115.

"We suggest buying gold on dips around ₹99,100 with a stop loss of ₹98,660 for the target of ₹99,700," said Jain.

Rahul Kalantri, VP of commodities at Mehta Equities, said Gold has support at $3,310-3,285 and resistance at $3,357-3,374. Silver has support at $37.80-37.55 and resistance at $38.35-38.55.

In INR, gold has support at ₹99,050-98,750, while resistance is at ₹99,650-99,950. Silver has support at ₹1,12,980-1,12,050 while resistance is at ₹1,14,450, 1,15,050, said Kalantri.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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