Gold Prices Today: Volatility to rule amid macro concerns, strong dollar, FOMC minutes

Gold, gold prices

Gold was listless during early trading hours on Wednesday, as investors awaited minutes from the Federal Reserve's December policy meeting that could offer hints on the US central bank's tightening path.

Spot gold held its ground at $1,838.69 per ounce, as of 0023 GMT, after hitting a six-month peak in the previous session. US gold futures dipped 0.1 percent to $1,843.60.

At 10:10am, gold was trading 0.35 percent higher on the Multi Commodity Exchange (MCX) at Rs 55,726 for 10 grams. Silver was up 0.31 percent at Rs 70,135 a kilogram.

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Nirpendra Yadav, Senior Research Analyst, Swastika Investmart 

Gold prices retreated from a 2 and half year high as the US dollar index gained ground and rose 1.10 percent yesterday. The US dollar index gained in expectation of hawkish FOMC meeting minutes to be released on Wednesday, however, China's Caixin Manufacturing PMI remained below 50 levels increasing the demand concern in crude oil and industrial metals that may support the bullion prices.

Day trend in precious metals may remain range bound. Gold has resistance at Rs 56,000 and support at Rs 55,000. Silver has resistance at Rs 71,200 and support at Rs 68,000.

Rahul Kalantri, VP Commodities, Mehta Equities

Bullion prices were up in early trades on Tuesday, but off their highs that saw gold notch a six-month high and silver an eight-month peak. Bullions are witnessing safe-haven demand at the start of the new year, along with technical buying amid bullish charts. Risk aversion is seen early this week as global stock markets remain wobbly amid concerns about weakening economic growth in 2023 for major industrialised countries. Benchmark US 10-year Treasury yields were near their lowest in a week, reducing the opportunity cost of holding non-yielding gold.

The dollar index jumped 1 percent that put pressure on precious metals. The market focus is now on the release on Wednesday of the minutes from the Fed's December 13-14 policy meeting as well as other economic data expected this week.

We expect gold and silver prices to remain volatile in today’s session ahead of the FOMC meeting minutes report. Gold has support at $1828-1817 while resistance is at $1855-1868. Silver has support at $23.72-23.55, while resistance is at $24.30-24.48. In rupee terms, gold has support at Rs 55,240-55,050, while resistance is at Rs 55,680, 55,850. Silver has support at Rs 69,450-68,980, while resistance is at Rs 70,420–70,780.

Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One

Gold was back on track after encountering a hiccup in the previous session as the yellow metal closed 0.87 percent higher at 1839.5$ per ounce. The market is still awaiting the Federal Reserve's December policy meeting minutes, which could provide information on the direction of the US central bank's tightening.

We expect gold to trade higher towards Rs 55450 levels, a break of which could prompt the price to move higher to Rs 55680 levels.

With agency inputs

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