Gold prices edged up on February 7 in the international markets, helped by a slight pullback in the dollar, with investors eyeing Federal Reserve Chair Jerome Powell's speech later in the day to gauge the US central bank's monetary policy path.
Spot gold was 0.2 percent higher at $1,870.63 per ounce, as of 0046 GMT, after hitting its lowest since January 6 in the previous session. US gold futures rose 0.2 percent to $1,882.50.
At 10:07 am, gold was trading 0.2 percent higher on the Multi Commodity Exchange (MCX) at Rs 57,068 for 10 grams, while silver added 0.17 percent to Rs 67,511 a kilogram.
Nirpendra Yadav, Senior Research Analyst at Swastika Investmart
Gold rose marginally yesterday after falling sharply from its nine-month high as US payroll data came in stronger than expected. The improved economic data in the United States reduced the fear of a recession. However, investors are awaiting the speech of Fed chair Jerome Powell, scheduled later in the day, for more clarity on the monetary policy outlook.
The US dollar index has gained ground in anticipation of the hawkish tone in Powell's speech, which may continue putting pressure on bullion prices. Gold has resistance at Rs 57400 and support at Rs 56500. Silver has support at Rs 66700 and resistance at Rs 68700.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold prices were modestly up and silver traded a bit weaker on Monday. Gold hit a four-week low overnight and silver a two-month low following a surprisingly strong US jobs report on Friday that tanked the precious metals markets.
Markets remained jittery on Monday led by US-China tensions and tight United States labor market data, which has infused fresh blood into Fed’s policy tightening spell. Bullions also got weaker as the dollar gained 0.71% and the dollar index is currently settled at 103.485. Bullion traders will eye a speech from Federal Reserve Chair Jerome Powell.
We expect gold and silver to remain volatile in today’s session. Gold has support at $1851-1840 while resistance is at $1884-1892. Silver has support at $22.08-21.95, while resistance is at $22.62-22.85. In rupee terms, gold has support at Rs 56,520-56,360, while resistance is at Rs 57,270, 57,450. Silver has support at Rs 67,050-66,520, while resistance is at Rs 67,850–68,380.
NS Ramaswamy, Head of Commodities, Ventura Securities
Gold yesterday was trading on a flat note, with Comex Gold trading between $1872.60 - 1862.30 and MCX Gold trading between Rs 57195-56638. The dollar index rebound yesterday touching a high of 103.64. Fed funds futures now see rates rising above 5% in May after last week's positive jobs data. US Treasury Secretary Janet Yellen yesterday said she saw a path for avoiding a US recession, with inflation coming down significantly and the economy remaining strong, given the strength of the US labor market.
Traders will be watching Federal Reserve Chair Jerome Powell's speech later today for insights on upcoming Fed's monetary moves. On MCX immediate resistance for gold is Rs 58100 and immediate support is near Rs 56150. On Comex immediate resistance is near $1920 and immediate support is near $1835 levels.
With agency inputs
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