Gold prices inched lower on Wednesday in the international markets as the US dollar firmed up, while expectations of a slowdown in the pace of Federal Reserve interest rate hikes limited the losses.
At 10:01am, gold was trading 0.24 percent lower on the Multi Commodity Exchange (MCX) at Rs 56,215 for 10 grams, while silver was almost flat, down 0.01 percent at Rs 69,179 a kilogram.
Spot gold dipped 0.3 percent to $1,902.79 per ounce, as of 0256 GMT. US gold futures fell 0.2 percent to $1,906.00.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver prices fell on Tuesday as the dollar ticked up, while investors still sought direction from the US Federal Reserve's rate hike path. The dollar index gained 0.2 percent, making gold more expensive for overseas buyers, while benchmark 10-year yields also moved up.
Precious metals also plunged after downbeat Chinese economic data as economic growth slowed to 3 percent in 2022 from 8.1 percent in 2021, official data said Tuesday.
We expect gold and silver to remain volatile in today’s session. Gold has support at $1892-1880 while resistance at $1924-1940. Silver has support at $23.75-23.50, while resistance is at $24.22-24.40. In rupee terms, gold has support at Rs 56,110-55,780, while resistance is at Rs 56,580, 56,710. Silver has support at Rs 68,550-68,120, while resistance is at Rs 69,620–70,080.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver prices settled on a weaker note in the international markets. Gold February futures contract settled at $1,909.90 per troy ounce, down by 0.61 percent and silver March futures contract settled at $24.07 per troy ounce, down by 1.25 percent. Domestic markets also settled on a weaker note.
We expect gold and silver prices to remain volatile in today’s session ahead of the Bank of Japan policy meetings. Gold has support at $1900-1784, while resistance at $1922-1934 per troy ounce. Silver has support at $23.84-23.55, while resistance is at $24.30-24.66 per troy ounce.
At MCX, gold has support at Rs 56220-56050 and resistance at Rs 56500-56680 while silver has support at Rs 68750-68200 and resistance at Rs 69800-70300. We suggest buying silver around Rs 69000 with a stop loss of Rs 68550 on a closing basis for target of Rs 70000.
Nirpendra Yadav, Senior Research Analyst at Swastika Investmart
Gold and silver prices are stuck in a range, awaiting more clues from today's economic data. A mild recovery in the US dollar index kept precious metals down yesterday. Improved Chinese GDP and industrial production data paused the upside rally in precious metals. However, global uncertainty may support the precious metals' near-term trend. Today's trend in precious metals is likely to be on the upside. Gold has resistance at Rs 56600 and support at Rs 56000. Silver has resistance at Rs 70200 and support at Rs 68500.
Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One
The mild start to the week further softened, as gold prices slipped over half a percent lower on Tuesday, settling at $1908.4 per ounce. Although forecasts of a slower pace of interest rate increases by the US Federal Reserve restricted the downside losses, the downturn in bullion coincided with the dollar's strengthening. Rates that are lower tend to be good for gold because they make owning the non-yielding asset less expensive.
We expect gold to trade lower towards Rs 56070 levels, a break of which could prompt the price to move lower to Rs 55870 levels.
With agency inputs
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