The appeal of bullion as a hedge against price increases waned as gold prices edged down on Monday in the worldwide markets as central banks signalled additional interest rate increases to control the stubbornly high inflation. Spot gold was down 0.1 percent at $1,853.99 per ounce after reaching its highest level since February 15 on Friday. To $1,859.90, U.S. gold futures increased by 0.3%. On Monday, gold prices are trading slightly lower. Spot Morning trading on the Comex saw gold prices trading down 0.09% at $1855 per ounce as short-term investors booked profits following a nearly 2.51% increase in price the previous week.
While a string of positive US macroeconomic data fueled concerns that the U.S. Federal Reserve will keep raising interest rates to combat sticky inflation, the dollar index lingered near its recent peak. Going ahead, US Nonfarm Payrolls and the Unemployment Rate are crucial macroeconomic indicators for the outlook for the gold price this week, according to Fed Chair Powell’s testimony. With a positive tendency, we anticipate bullion prices to stabilise in a wider range, but selling pressure is expected to be seen at significant resistance levels. Supports and resistance levels for Comex spot gold for the day are $1835.18 and $1876.18 per ounce, respectively.
Support for the MCX Gold April future is around Rs. 55600 per 10 grammes, while resistance is at Rs. 56380 per 10 grammes. Rahul Kalantri, VP of Commodities, Mehta Equities said, After falling for five straight weeks, the precious metals gold and silver both increased last week. The direction of the billions this week will now be determined by the upcoming testimony of Federal Reserve Chair Jerome Powell and the February employment data. The precious metals rose last week after profit-taking in bond rates, the dollar index, and conflicting global economic data.
In today’s session, we anticipate continued price volatility for gold and silver. Support levels for gold are $1842-1830 and $1864-1876 respectively. Support for silver is seen at $21.05-20.85, while resistance is found at $21.40-21.55. Support and resistance for gold in rupees are respectively located at Rs 55,580-55,410 and Rs 55,980-56,150. Support and resistance for silver are respectively located at Rs. 63,750 and Rs. 63,220.