Gold prices ticked lower on Monday in the international markets as central banks indicated further interest rate hikes to tame the stubbornly high inflation, diminishing bullion's appeal as a hedge against price increases.
Spot gold was down 0.1 percent at $1,853.99 per ounce, as of 0305 GMT, after climbing to its highest since February 15 on Friday. US gold futures rose 0.3 percent to $1,859.90.
At 10.26am, gold was up 0.38 percent on the Multi Commodity Exchange (MCX) at Rs 55,931 for 10 grams, while silver was up 0.64 percent at Rs 64,813 per kilogram.
Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities
Gold prices trade marginally weak on Monday. Spot Gold prices at Comex were trading down by 0.09% at $1855 per ounce in morning trade as short-term traders booked profit after prices climbed nearly 2.51% last week. Dollar index hovered around its recent peak as series of strong US macro data added fears that US Federal Reserve would keep raising rates to contain sticky inflation. Looking forward, for this week, Fed Chair Powell testifies, US Nonfarm Payrolls and Unemployment Rate are important macro data for gold price outlook.
We expect bullion prices to consolidate in broader range with positive bias, however selling pressure will likely to be seen at major resistance levels. Comex spot gold has supports at $ 1835-1819 per ounce and resistance at $1860-1875 per ounce for the day. MCX Gold April future has support at Rs 55600 per 10 gram and resistance at Rs 56380 per 10 gram.
Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One
It looks like all the recent weakness witnessed in gold, comes to a pause, as the yellow metal rose for the recently concluded week. Bullion prices posted gains of over 2 percent. With this up-move, gold prices have recouped the losses from the previous week. The dollar index, which has fallen from a seven-week high backed the gains in gold, making the safe-haven asset less expensive for investors holding foreign currencies.
Despite the gains, investors are bracing for further US interest rate hikes in the face of persistently high inflation. US Fed's rate hike stance will see the dollar gaining strength, eventually limiting the upside in the yellow metal.
Rahul Kalantri, VP Commodities, Mehta Equities
Both the precious metals gold and silver rose last week after five consecutive weeks of downfall. Bullions this week will now take direction from the upcoming Federal Reserve Chair Jerome Powell's testimony and the February employment report. Last week, the precious metals gained after profit taking in the dollar index and bond yields and a mixed global economic data.
We expect gold and silver prices to remain volatile in today’s session. Gold has support at $1842-1830 while resistance is at $1864-1876. Silver has support at $21.05-20.85, while resistance is at $21.40-21.55. In rupee terms, gold has support at Rs 55,580-55,410, while resistance is at Rs 55,980, 56,150. Silver has support at Rs 63,750-63,220, while resistance is at Rs 64,890–65,480.
(With agency inputs)
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