Gold Prices Today: Volatility on cards after Fed minutes as investors eye US economic data

Gold prices ticked lower on Thursday in the international markets after minutes from the Federal Reserve's latest policy meeting indicated that the US central bank may keep the interest rates higher for longer to curb inflation.

Spot gold was down 0.1 percent at $1,823.69 per ounce, as of 0039 GMT. US gold futures slipped 0.5 percent to $1,833.10.

At 9:24am, gold was down 0.39 percent on the Multi Commodity Exchange (MCX) at Rs 55,862 for 10 grams, while silver was trading lower by 0.37 percent at Rs 65,199 per kilogram.

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Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities

Gold prices traded flat to positive on Thursday after digested minutes from the Federal Reserve's latest policy meeting indicated that the US Central Bank would likely keep higher interest rate for longer time to bring down high inflation at targeted level.

Spot Gold prices at Comex were trading up by 0.23 percent at $1829 per ounce in the morning trade. Traders of Fed funds futures expect benchmark rates to peak at 5.362 percent in July and remain above 5 percent through the year. Gold prices got support from firm dollar and correction in yields after recent rally. Benchmark 10-year note yields slipped from a three-month peak hit on February 23.

We expect gold price to trade sideways until price capped in range of $1819 to $1845 per ounce. Comex spot gold has support at $1819-1805 per ounce and resistance at $1845-1859 per ounce for the day. MCX Gold April future has support at Rs 55,700 per 10 gram and resistance at Rs 56,540 per 10 gram.

Manoj Kumar Jain, Prithvi Finmart Commodity Research

Gold and silver prices settled on a weaker note in the international markets. Gold April futures contract settled at $1,841.50 per troy ounce, down by 0.05 percent and silver March futures contract settled at $21.68 per troy ounce, down by 0.97 percent. Domestic markets also settled on a weaker note.

The US Fed released its February month meeting minutes on Wednesday and Federal Reserve committee members agreed on the aggressive interest rate hikes to control inflation. The US inflation is well above the Federal Reserve’s target rate of 2.0 percent.

Gold and silver reacted negatively on the Fed minutes, as gold is sustaining below $1850 per troy ounce and silver prices also slipped below $21.80 per troy ounce levels. However, the Federal Reserve committee shows concerns of slower economic growth and also fears economic recession in the United States which could support precious metals at lower levels.

We expect gold and silver prices to remain volatile. The yellow metal could test $1820 per troy ounce and silver could test $21.20 per troy ounce levels in the upcoming sessions. Gold has support at $1820-1808, while resistance is at $1854-1868 per troy ounce. Silver has support at $21.20-21.00, while resistance is at $21.94-22.20 per troy ounce.

At MCX, gold has support at Rs 55,920-55,660 and resistance at Rs 56,300-56,550 while silver has support at Rs 65,000-64,400 and resistance at Rs 65,950-66,300. We suggest selling gold on rise around Rs 56,250 with a stop loss of Rs 56,440 for target of Rs 55,800.

NS Ramaswamy, Head of Commodities, Ventura Securities

COMEX gold is trading lower after minutes of the Fed’s February meeting, released on February 22 showed that major members of the monetary policy committee supported raising interest rates for longer this year. The US dollar hit a six-week high at 104.3 on fears of a hawkish Federal Reserve. Market participants focus are now turning to upcoming economic data for more cues on the US economy and monetary policy. COMEX gold has support near $1,831 while resistance is at $1,854.

With agency inputs

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