As a stronger currency and concerns about further interest rate hikes by the U.S. Federal Reserve clouded the picture for non-yielding metal, gold prices fell on February 17 in the international markets and were expected to decline for the week. At $1,832.42 per ounce, spot gold prices were down 0.3%. This week, the price of gold dropped 1.7%. U.S. gold futures decreased 0.6 percent to $1,841.
Manoj Kumar Jain, Prithvi Finmart Commodity Research, said The international markets saw a small increase in gold and silver prices on February 16. The troy ounce price of gold for the month of April finished at $1,851.80, up 0.35 percent, and the troy ounce price of silver for the month of March was $21.71, up 0.18 percent. Additionally, domestic markets ended on a strong note.
Compared to the previous reading of 8.9, the U.S. Philly Fed manufacturing index now indicates a contraction of 24.3. metals’ advances were constrained by unfavorable U.S. Philly Fed manufacturing index data, a strong dollar, and sluggish U.S. equity markets. Due to the strong dollar, we anticipate that the price of gold and silver will stay sluggish and may even decline further in the coming sessions. Support and resistance levels for gold per troy ounce are $1838-1822 and $1866-1878, respectively.
Support for silver is between $21.44 and 21.20, and resistance is between $21.94 and 22.20 per troy ounce. Silver has support at Rs. 65,100-64,750 and resistance at Rs. 66,000-66,650 on the MCX, while gold has support at Rs. 56,080-55,900 and resistance at Rs. 56,440-56,580. At a target price of Rs 55,900, we advise selling gold for around Rs 56,350 with a stop loss of Rs 56,580.