Gold rises as silver weakens and the dollar declines; support seen at 55,200

Despite conflicting global cues, the gold rate is up this Friday, while the silver rate is down. Gold April futures were selling at Rs 55,743 per 10 kilos on the Multi Commodities Exchange, up Rs 156 or 0.28%. On the MCX, silver March futures were selling at Rs 65,642 per kilogram, down Rs 83. Gold’s spot price increased 0.2% to $1,826.45 per ounce. Futures for U.S. gold increased 0.4% to $1,834.80.

Strong economic data and the expectation of stronger U.S. PCE statistics would increase the likelihood of more rate hikes, therefore gold prices are expected to trade with a bearish bias. The next support at 55,200 and 55,000 will likely be reached by MCX gold as it declines. To the upside, the price would face significant resistance at the 10-day EMA, which is located at 56,200. According to research from ICICIdirect, MCX Silver is predicted to move in the same direction as yellow metal and is forecast to sag into the 65,400–65,000 range.

Gold and silver prices fell significantly on Thursday, with the price of the yellow metal reaching a seven-week low and silver set to close at a similar level. There are warning signs that the U.S. Federal Reserve may hold interest rates higher for longer than expected, which will have a detrimental effect on demand for metals markets. The U.S. GDP data was somewhat hotter than anticipated, which temporarily increased U.S. bond yields, supported advances in the U.S. dollar index, and decreased the price of gold and silver.

We anticipate that the price of gold and silver will remain erratic today. Support levels for gold are $1808-1795 and resistance levels are $1834-1842. Support for silver is located at $21.05-20.85, while resistance is found at $21.40-21.58. Support and resistance for gold are in Indian rupees (INR) at 55,240 and 55,010, respectively. According to Rahul Kalantri, VP of Commodities at Mehta Equities, silver has support between Rs 63,950 and Rs 63,520 and resistance between Rs 64,790 and Rs 65,380.

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