Gold prices ticked up on Friday in the international markets as markets digested recent comments from Federal Reserve Chair Jerome Powell, but the precious metal was headed for its biggest weekly fall since November after a 2% drop in the previous session.
Spot gold rose 0.2% to $1,916.34 per ounce by 0042 GMT, after shedding 2% in the previous session in a sell-off sparked by firm dollar and profit-taking. US gold futures eased 0.1% to $1,915.60.
At 9.33 am, gold was trading 0.2 percent higher on the Multi Commodity Exchange (MCX) at Rs 57,810 for 10 grams, while silver added 0.17 percent to Rs 70,324 a kilogram.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver ended lower on Thursday amid profit taking by the shorter-term futures traders after gold hit a new high in the domestic market and silver reached a four-week high overnight. A rebound in the U.S. dollar index after its pounding on Wednesday also acted as a bearish element for the precious metals.
The European Central Bank and the Bank of England on February 2 raised the interest rates by 0.5%. The moves were not unexpected. The US unemployment claims in the last week also declined and that triggered profit taking in precious metals. Focus now turns to today’s January month US employment situation report which will decide future direction.
We expect gold and silver to remain volatile in today’s session. Gold has support at $1902-1888 while resistance is at $1928-1940. Silver has support at $23.20-23.00, while resistance is at $23.68-23.85. In rupee terms, gold has support at Rs 57,520-57,360, while resistance is at Rs 57,970, 58,150. Silver has support at Rs 69,450-68,620, while resistance is at Rs 70,850–71,280.
NS Ramaswamy, Head of Commodities, Ventura Securities
COMEX gold is trading on a flat note in Asian markets after previous session sell from the nine months high of $1,975.The dollar index rebound from the low of 100.70, the dollar index is trading at 101.71 .Meanwhile, the European Central Bank raised interest rates by a widely expected 50 basis points. Jobless claims unexpectedly fell in the prior week, while other data showed US automobile sales grew in January.
The better-than-expected unemployment claims reading, coupled with fears of strong nonfarm payrolls data later today, saw investors reevaluate their bets that inflation will slow at a quicker-than-expected pace. COMEX gold has support near $1,912 and resistance at $1,958.On the domestic front, prices are expected to open near Rs 57,700.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver prices on February 2 settled on a mixed note in the international markets. Gold April futures contract settled at $1,930.80 per troy ounce, down by 0.62% and silver March futures contract settled at $23.62 per troy ounce, up by 0.03%. Domestic markets also settled on a mixed note.
Gold prices slipped from nine month highs and silver prices also slipped from four week highs after rebound in the dollar index. The Bank of England and the European Central Bank increased interest rates by 50 basis points respectively and also limits gain of precious metals. The US unemployment claims last week also declined to 1,83,000 against expected claims of 1,96,000 and also trigger profit taking in precious metals. However, weakness in the US equity markets due to disappointed corporate earnings and cooling off the US bond yields are supporting precious metals at lower levels. The US 10-year bond yields slipped below 3.40%.
We expect gold and silver to remain volatile in today’s session ahead of the US job reports. Gold could hold $1900 per troy ounce and silver could hold $23 per troy ounce levels. Gold has support at $1912-1900, while resistance at $1945-1958 per troy ounce. Silver has support at $23.30-23.05, while resistance is at $24.00-24.44 per troy ounce.
At MCX, gold has support at Rs 57440-57200 and resistance at Rs 57950-58200 while silver has support at Rs 69550-68900 and resistance at Rs 71000-71800. We suggest buying silver on dips around Rs 69500 with a stop loss of Rs 68750 for target of Rs 71000.
With agency inputs
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