Gold prices were flat on January 11 in the international markets as markets anticipated quicker rate hikes based on key December US inflation data due later this week, while stronger bond yields continued to cap gains.
On the Multi-Commodity Exchange (MCX), gold contracts were up 0.14 percent at Rs 47,520 for 10 grams at 9.37 am. Silver futures added 0.18 percent to Rs 60,774 a kilogram.
The dollar, which moves against gold prices, gained 0.3 percent yesterday. Easing crude oil prices as Libya's oil production bounced back to strengthen the dollar put pressure on precious metals. The US 10-year bond yield also rose to 1.8 percent which is attracting investors to park their money in the dollar index. Selling pressure is expected in precious metals if prices rise towards resistance levels. Gold has resistance at Rs 47700 and support at Rs 47250. Silver has resistance at Rs 61000 and support at Rs 60000, said Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart.
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Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades marginally higher near $1805/oz after a 0.1 percent gain yesterday. Gold trades higher amid choppy US dollar, retreat in bond yields from recent highs, mixed US jobs report, increasing virus concerns and geopolitical tensions. However, weighing on price is Fed’s willingness to tighten monetary policy aggressively.
Gold has continued to trade in a broad range of $1780-1830 and directionless trade may continue as market players await US inflation data to get more clarity on Fed’s monetary policy stance however hopes of faster rate hikes may keep US dollar supported and this may keep pressure on gold.
Manoj Kumar Jain of Prithvi Finmart Commodity Research
Gold and silver traded steady on Monday ahead of the US Federal Reserve Chairman’s testimony on Tuesday. Both the precious metals settled on a slightly positive note in the international markets. We expect both the precious metals to remain volatile in today’s session ahead of the Fed chair testimony and expect it to hold its support levels.
Gold has support at $1788-1774 per troy ounce and resistance at $1810-1822 per troy ounce while silver has support at $22.20-21.84 per troy ounce and resistance at $22.70-23.00 per troy ounce. At MCX, gold has support at Rs 47300-47100 and resistance at Rs 47600-47800 while silver has support at Rs 60350-60000 and resistance at Rs 61100-61500. We suggest buying gold around Rs 47350 with a stop loss of Rs 47180 for target of Rs 47700 and silver around Rs 60300 with a stop loss of Rs 59900 for target of Rs 61200, he added.
Vidit Garg, Director, MyGoldKart
Yesterday gold saw range-bound movement as a rise in US 10-year bond yield pressured the prices while expectations of upbeat inflation data supported them around $1790. Technically on daily charts, RSI has shown positive divergence but it needs to cross 57 mark for bulls to get upper hand, Intraday charts are in overbought positions which suggests that any move below $1797 must be used to exit long positions. For the day if $1797 is not broken then we expect spot gold to touch $1818 - 1821.
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