Gold prices edged higher on Thursday in the international markets, helped by a slight dip in the dollar, although US Federal Reserve Chair Jerome Powell's hawkish remarks limited further gains in zero-yielding bullion.
Spot gold rose 0.2 percent to $1,638.32 per ounce, as of 0118 GMT, after falling 0.8 percent on Wednesday. US gold futures fell 0.6 percent to $1,640.70.
At 10:17 am, gold contracts were trading 0.5 percent lower on the Multi-Commodity Exchange (MCX) at Rs 50,351 for 10 grams and silver was down 1.07 percent at Rs 58,161 a kilogram.
Trading Strategy
Pritam Patnaik, Head - Commodities, HNI and NRI Acquisitions, Axis Securities
In remarks at a press conference after the Fed raised rates by 75 basis points for a fourth consecutive meeting, Fed chair said there is significant uncertainty around the level of rates needed to bring down inflation, but 'we still have some ways to go'. The US Fed has effectively dashed any hope of a pause or slowdown in the future rate hikes , by continuing on the Hawkish path.
This led to a boost to the dollar index and the US bonds, which in turn shaved off the bullion prices . The uncertainty of future Fed action has dented the appeal for gold in the short term, but with the precious metal already trading close to its lows, one could look at buying on dips for long term rally.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver prices on Wednesday settled on a mixed note in the international markets. Gold December futures contract settled at $1,650.00 per troy ounce, up by 0.02 percent while silver December futures contract settled at $19.59 per troy ounce, down by 0.39 percent. Domestic markets also settled on a mixed note.
Gold is expected to test its support level of $1634 and silver could also test $19 per troy ounce levels. Gold has support at $1634-1622, while resistance at $1658-1672 per troy ounce. Silver has support at $19.24-19.00, while resistance is at $19.88-20.10 per troy ounce. At MCX, gold has support at Rs 50480-50300 and resistance at Rs 50750-50920 while silver has support at Rs 58200-57650 and resistance at Rs 59100-59500. We suggest selling silver below Rs 58600 with a stop loss of Rs 59100 for target of Rs 57650.
With agency inputs
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