Precious metals to remain erratic; yellow metal may encounter resistance at Rs. 56,980–57,155

As the dollar dropped on Tuesday and investors awaited US economic data in the expectation that the Federal Reserve would raise interest rates more gradually, gold prices moved up on the world markets. The yellow metal continued to experience an upsurge in the session after the previous week’s close, finishing with 0.25 percent gains. Investors are anticipating slower interest rate increases from the Federal Reserve as a result of the U.S. fourth-quarter GDP growth estimates data.

The Fed is anticipated to boost rates by 25 basis points at its forthcoming policy meeting after slowing the pace to 50 basis points in December following four straight 75-bps increases. We anticipate that gold will trade higher toward the Rs 56,990 level and that if this barrier is broken, the price will rise to the Rs 57,130 level. Manoj Kumar Jain, Prithvi Finmart Commodity Research,toldOn January 23, the worldwide markets saw uneven closing prices for gold and silver.

Silver March futures contract finished at $23.55 per troy ounce, down 2.10 percent from the settlement price of the gold February futures contract, which was up 0.05 percent at $1,928.60 per troy ounce. Also ending on a mixed tone were domestic markets. However, gold is anticipated to keep its crucial support level of $1,900 per troy ounce and continue to find support at lower levels. Both precious metals are anticipated to stay volatile in today’s session.

As the dollar index struggles, precious metal prices may be supported. Support for gold is found between $1,916 and 1,904 while resistance is found between $1,940 and 1,955. Support and resistance levels for silver per troy ounce are $23.20 and 22.88, respectively. Silver has support at Rs. 67,220-66,660 and resistance at Rs. 68,550-69,100 on the MCX, while gold has support at Rs. 56,650-56,440 and resistance at Rs. 56,980-57,155. With a stop loss of Rs 56,440 and a target price of Rs 57,000, we advise purchasing gold on declines of around Rs 56,600.

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