Gold Price Today, 02 August- Gold soars on safe-haven demand as Fitch downgrades US Credit Rating

Gold Price Today, 02 August: Gold soars on safe-haven demand as Fitch downgrades US Credit Rating

Gold Price Today, Gold Price Outlook, Gold Price Forecast: MCX Gold prices surged on declining U.S. dollar on Wednesday, while the silver rates climbed as much as 0.54%. On the Multi Commodity Exchange, gold October futures were trading at Rs 59,630 per 10 grams, up by Rs 242 or 0.41%. Silver September futures were trading up by Rs 397 at Rs 74, 340 per kg on MCX.

Gold climbed on Wednesday as the U.S. dollar, Treasury yields and Asian stocks stumbled after Fitch downgraded the United States’ coveted triple-A credit rating, souring confidence in the economy and shoring up interest in safe-haven bullion, according to Reuters. Spot gold was up 0.2% at $1,946.97 per ounce, while U.S. gold futures rose 0.3% to $1,984.

“The credit rating agency cut the US one level from AAA to AA+, echoing a move made more than a decade ago by S&P Global, citing expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA’ rated peers over the last two decades. U.S. ADP non-farm employment change will also be in focus for the day ahead of the government Labour report on Friday,” Ravindra V. Rao added.

MCX Gold finds support at 59180; faces resistance at 59850

“Gold prices were steady on Tuesday after declining more than 1.0% in the previous session, with spot gold at Comex trading marginally lower by 0.05% at $1948.5 per ounce in the morning session. Gold prices recovered from yesterday’s low after the U.S. dollar and Treasury yields fell as Fitch downgraded the US credit rating, lowering investor confidence ahead of important labour market data due this week. Investors prefer Gold as a safe-haven investment in times of economic uncertainty,” said Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities

“From a technical perspective, we believe Comex gold has strong support at the $1940 level; if it breaks this support level, then the fall will extend to the $1933/$1925 level. Areas around $1970 act as resistance for the day. The MCX Gold October future has support at Rs 59,180 and resistance at Rs 59,850,” Saumil Gandhi added.