Gold Prices Today: Precious metal to remain range-bound amid volatility in dollar index

Gold, gold prices

Gold prices were steady on Tuesday in the international markets as the dollar faltered, although risks from looming aggressive interest hikes by the US Federal Reserve limited gains in zero-yielding bullion.

Spot gold held its ground at $1,651.75 per ounce, as of 0118 GMT. US gold futures were down 0.3 percent at $1,658.30.

At 09:30 am, gold contracts were trading 0.23 percent lower on the Multi-Commodity Exchange (MCX) at Rs 50,355 for 10 grams and silver added 0.31 percent at Rs 56,480 a kilogram.

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Jigar Trivedi, Senior Research Analyst- Commodity & Currency, Reliance Securities

Comex Gold steadied around $1,650 an ounce, pausing a recent slide as the dollar lost some ground after the UK reversed almost all of its planned tax cuts, boosting risk appetite in the market. Meanwhile, expectations that the US Fed will tighten further to bring down inflation continued to weigh on the metal. Latest data showed that US year-ahead inflation expectations increased, which along with another hot inflation report in September support the case for more rate hikes.

Gold also continued to underperform as a safe-haven asset despite persistent inflationary pressures and mounting risks of a global recession, as rising US interest rates drove investors to seek shelter in the dollar. MCX Gold December may decline to Rs 50,200 per 10 gram.

Nirpendra Yadav, Senior Research Analyst at Swastika Investmart

Gold and silver prices gained as the US dollar index slipped 1.15 percent yesterday. The US benchmark Treasury yield also eased and supported the precious metals prices yesterday. US Empire State Manufacturing survey shows that business activity declined which puts pressure on the US dollar index and supports the demand for precious metals.

Today's trend in precious metals may remain range bound to the upside due to price correction in the US dollar index. Gold has resistance at Rs 51,000 and support at Rs 50,200. Silver has resistance at Rs 57,500 and support at Rs 55,200.

Manoj Kumar Jain of Prithvifinmart Commodity Research

Gold and silver prices on Monday settled on a positive note in the international markets. Gold December futures contract settled at $1,664.00 per troy ounce, up by 0.84 percent and silver December futures contract settled at $18.72 per troy ounce, up by 2.85 percent. Domestic markets also settled on a positive note. We expect gold and silver to remain volatile amid volatility in the dollar index and could hold its support levels. Gold has support at $1650-1634, while resistance at $1680-1692 per troy ounce. Silver has support at $18.40-18.15., while resistance is at $19.00-19.24 per troy ounce.

At MCX, gold has support at Rs 50,220-50,050 and resistance at Rs 50,700-50,880 while silver has support at Rs 55,800-55,200 and resistance at Rs 56,660-57,200. We suggest buying gold on dips around Rs 50,250 with a stop loss of Rs 50,050 for a target of Rs 50,700.

(With agency inputs)

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