Gold prices today: The support level is Rs. 50,300 as the hawkish Fed maintains pressure on precious metals

While U.S. Federal Reserve Chair Jerome Powell’s hawkish comments restrained additional gains in zero-yielding bullion, gold prices crept up on Thursday in the foreign markets, helped by a modest decline in the dollar.
After losing 0.8 percent on Wednesday, spot gold increased 0.2 percent to $1,638.32 per ounce. U.S. gold futures decreased 0.6 percent to $1,640.70.

Pritam Patnaik, Head – Commodities, HNI, and NRI Acquisitions, Axis Securities stated The Fed chair stated at a news conference following the Fed’s fourth straight meeting that there is tremendous uncertainty surrounding the level of rates required to reduce inflation, but that “we still have some ways to go.” By sticking on its Hawkish course, the U.S. Fed has basically shattered any hopes of a break or slowdown in future rate hikes. This increased the value of the dollar index and U.S. bonds, which in turn reduced the price of bullion. The short-term appeal of gold has been diminished by the uncertainty around potential Fed action, but given that the precious metal is currently trading near its lows, one would consider purchasing on dips in anticipation of a long-term uptrend.

Manoj Kumar Jain, Prithvi Finmart Commodity Research, said In the international markets on Wednesday, prices for gold and silver came to a mixed conclusion. Silver December futures contract concluded at $19.59 per troy ounce, down by 0.39 percent from its opening price of $19.59, while the gold December futures contract ended up at $1,650.00 per troy ounce, up 0.02 percent. Domestic markets ended their session with mixed results.

The support level of $1634 for gold is anticipated to be tested, and levels of $19 per troy ounce for silver are also possible. Support for gold is located at $1634-1622 while resistance is located at $1658-1672 per troy ounce. Support for silver is located between $19.24 and $19.00, and resistance is between $19.88 and $20.10 per troy ounce. Silver has support at Rs. 58200-57650 and resistance at Rs. 59100-59500 on the MCX, while gold has support at Rs. 50,480-50,300 and resistance at Rs. 50,750-50,920. For a target price of Rs 57,650, we advise selling silver below Rs 58,600 with a stop loss of Rs 59,100.

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