Monday’s solid U.S. economic statistics fueled concerns that the Federal Reserve will continue raising interest rates to control inflation, but gold prices were flat and remained close to a two-month low. Gold’s spot price remained at $1,810.48 per ounce. At $1,817.40, U.S. gold futures were unchanged. On Monday, gold prices fluctuated between flat and up. Comex spot gold prices were trading at $1,812 per ounce in morning trade, up just 0.03%. This week, gold prices hit a two-month low as good US macroeconomic data fueled concerns that the Federal Reserve would increase interest rates quickly going forward
We anticipate that gold prices will continue to decline from their current level, and any price decline will present a buying opportunity. Supports for Comex spot gold for the day are at $1805-1791 per ounce and resistance is at $1831 per ounce. Support and resistance for the MCX Gold April future are set at Rs. 55,080 per 10 grams and Rs. 56,040, respectively. Rahul Kalantri, VP of Commodities, Mehta Equities, said the prices of both gold and silver continued to decline last week, with gold prices plunging to almost two-month lows and silver prices plummeting to 3.5-month lows on global markets.
When the dollar index had significant gains and climbed to two-month highs, crossing the 105 level, gold and silver continued to decline. Although the U.S. Fed is expected to raise interest rates aggressively going forward, the yield on the U.S. 10-year bond likewise reached 3.90% levels. With hotter-than-expected U.S. inflation and positive economic statistics, U.S. Fed officials call for more rate increases of 50 basis points. In January, the U.S. PCE price index increased by 0.6% compared to December, when it increased by 0.4%.
The price of gold and silver is likely to remain erratic today. Support and resistance levels for gold are $1798 and 1788, respectively. Support and resistance for silver are located at $20.62 and $20.48, respectively. The rupee support and resistance levels for gold are 55,170-54,940 and 55,660-55,850 respectively. Support and resistance for silver are at Rs 62,950 and Rs 62,420, respectively.
