Gold Prices Today: Global inflation to lend support, prices to stay volatile ahead of US ADP non-farm job data

Gold was steady on February 2 in international markets above the $1,800 psychological level as concerns surrounding Ukraine supported the safe-haven metal, while investors awaited US jobs data that is considered key for the Federal Reserve's tapering timeline.

At the Multi-Commodity Exchange (MCX), gold contracts were trading marginally lower by 0.09 percent at Rs 47,920 for 10 grams at 9.34 am and silver shed 0.07 percent to trade at Rs 61,317 a kilogram.

Gold and silver rebounded again on February 1 after profit taking in the dollar index. Both the precious metals settled on a positive note in the international markets. Gold April futures contract settled at $1801.50 per troy ounce with a gain of 0.36% and silver March futures contract settled at $22.60 per troy ounce with a gain of 0.92%. Both the precious metals also settled on a positive note in the domestic markets. Global inflation concerns continue to support precious metals prices. "We expect both the precious metals to remain volatile in today’s session ahead of the US ADP non-farm job reports," said Manoj Kumar Jain of Prithvi Finmart Commodity Research.

Gold has support at $1792-1784 per troy ounce and resistance at $1810-1822 per troy ounce while silver has support at $22.30-22.10 per troy ounce and resistance at $22.88-23.10 per troy ounce. At MCX, gold has support at Rs 47770-47550 and resistance at Rs 48100-48280 while silver has support at Rs 61000-60660 and resistance at Rs 61800-62220. "We suggest buying silver around Rs 61100 with a stop loss of Rs 60600 for a target of Rs 62200," he added.

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COMEX gold trades in a range near $1800/oz after a 0.3% gain yesterday. Gold is rangebound as support from correction in US dollar index, geopolitical tensions, mixed economic data and ETF inflows is countered by gains in equity market and persisting worries about Fed’s monetary tightening. Gold has bounced back after taking support near $1780/oz level but may struggle to build on the gains above $1800/oz as Fed’s tightening outlook may keep US dollar supported.

Gold was flat to up yesterday as traders are waiting to take fresh positions before job data due on Friday whereas weaker dollar and Ukraine concerns continued to provide support to the yellow metal. Technically, spot gold could not cross $1808 and for the day until it is trading below $1804, we can expect it to touch $1788.

On intraday charts, ADX is showing building of strong down trend for the day as readings have gone above 25 in the morning while RSI is showing strong downside divergence. For the day, sell Spot Gold at current level of $1797.50 with stop loss of $1804 for target of $1788 while stop and reverse to buy above $1804.50 for target of $1809-1811.

Gold soared as the Dollar index slipped near to 96 levels. US bond yield also retreated and fell by 0.8% on the previous day. Gold prices have crossed $1800 levels and have managed to stay above this level which may increase buying momentum in today's session. On MCX, gold has resistance at Rs 48100, above this level it may move towards Rs 48400 levels. It has immediate support at Rs 47800. Strong prices of industrial metals are supporting the current trend of silver. It is likely to move towards Rs 62700 levels while it has immediate support at Rs 61400.

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