Gold Prices Today: Precious metal to remain volatile ahead of US jobless claim data

Gold was trading a tad higher on February 16 from a five-week low in the international market as well as in India. At 10.21 am, gold was up 0.08 percent on the Multi Commodity Exchange (MCX) at Rs 56,170 for 10 grams, while silver was trading higher by 0.44 percent at Rs 65,712 per kilogram.

Spot gold rose 0.3 percent to $1,841.32 an ounce, while US gold futures were 0.3 percent higher at $1,850.70 at 0216 GMT.

Gains, however, were limited due to stronger-than-expected retail sales data and signs of sticky inflation in the US, which spurred fears of more interest rate hikes by the Federal Reserve, pushing up treasury yields.

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Gold was trading higher, with spot gold at Comex up 0.36 percent up at $1,852 in the morning. Gold prices rebounded on February 16 after falling to more than a month’s lows on the previous day, weighed down by the uptick in the dollar as better-than-expected US macro data raised worries that the Federal Reserve could hike interest rates further.

We expect gold to trade sideways to positive on February 16, with support for Comex spot gold at $1,840 and resistance at $1,860.

MCX April gold has support at Rs 56,020 and resistance at Rs 56,700.

On February 15, gold and silver prices slipped again following strong gains in the dollar index and the US 10-year bond yields.

Gold slipped to a nine-week low and so did silver in the international market. The dollar index crossed the 103.50 mark and the US 10-year bond yields crossed 3.80 percent amid anticipation of further interest rate hikes from the Federal Reserve.

Upbeat US retail sales, core retail sales data and higher-than-expected inflation numbers could prompt the Fed to maintain an aggressive stance by increasing interest rates to control inflation.

We expect gold and silver to remain volatile. Gold has support at $1,821-1,810, while resistance is at $1846-1,855. Silver has support at $21.20-21.00, while resistance is at $21.50-21.65.

In rupee terms, gold has support at Rs 55,940-55,810, while resistance is at Rs 56,420-56,640. Silver has support at Rs 64,850-64,320, while resistance is at Rs 65,750–65,980.

Precious metals extended losses as US economic data was better than the previous month. US retail sales were reported at 3 percent against -1.1 percent released in the previous month. Better US economic data, despite rising interest rates, raise the possibility of higher inflation, which may force the Fed to continue raising the interest rate in the coming months, putting pressure on bullion prices.

The dollar index gained 0.71 percent on February 15, which may continue to weigh on precious metals. Gold has resistance at Rs 56,700 and support at Rs 55,800. Silver has resistance at Rs 67,200 and support at Rs 63,800.

Comex gold is trading higher ahead of US jobless claim data due later in the day. The dollar index retreated from the recent high but the downside was limited as stronger-than-expected retail sales data and signs of sticky inflation in the US spurred fears of more interest rate hikes, pushing up treasury yields.

Comex gold has support near $1,842 and resistance near $1,862.

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