Precious metal will continue to fluctuate before U.S. unemployment claim statistics

On February 16, both in the international market and in India, gold was trading marginally higher from a five-week low. At 10.21 am, gold was trading 0.08 percent higher on the Multi Commodity Exchange (MCX) at Rs 56,170 for 10 grams, while silver was trading 0.44 percent higher at Rs 65,712 for a kilogram. Spot gold increased by 0.3 percent to $1,841.32 per ounce, while U.S. gold futures increased by 0.3 percent to $1,850.70.

Gains, however, were constrained by stronger-than-anticipated retail sales figures and indications of persistent inflation in the US, which raised concerns about more interest rate increases by the Federal Reserve and increased treasury yields. Rahul Kalantri, VP of Commodities at Mehta Equities, said Following significant increases in the dollar index and the yields on US 10-year bonds, gold and silver prices fell once further on February 15.

On the global market, silver and gold both fell to nine-week lows. In expectation of more interest rate increases from the Federal Reserve, the dollar index surpassed the 103.50 level and the yield on US 10-year bonds surpassed 3.80 percent. The Fed may continue to take an aggressive approach by raising interest rates to contain inflation in response to strong US retail sales, core retail sales statistics, and higher-than-expected inflation numbers.

Silver and gold are predicted to continue to be erratic. Support levels for gold are $1,821–1,810, while resistance levels are $1846–1,855. Support for silver lies between $21.20 and 21.00, while opposition lies between $21.50 and 21.65. Support and resistance levels for gold in rupees are Rs 55,940-55,810 and Rs 56,420-56,640, respectively. Support and resistance levels for silver are 64,850-64,320 and 65,750-65,980 respectively.

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