Gold Prices Today: Yellow metal likely to face selling pressure around Rs 56,250

Gold, Gold prices

Gold prices rose on March 3 on track for their first weekly gain in five, as the dollar eased, even though fears persisted that the US Federal Reserve would keep raising interest rates to curb inflationary pressures.

At 10.22 am, gold was up 0.17 percent on the Multi Commodity Exchange (MCX) at Rs 55,836 for 10 grams, while silver was up 0.64 percent at Rs 64,444 per kilogram.

Spot gold was up 0.3 percent at $1,840.89 per troy ounce at 0119 GMT. US gold futures rose 0.4 percent to $1,846.70.

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

As gold witnessed higher closing for the last three sessions, the prices on March 2 slipped marginally lower but remained on track for a weekly gain.

Even as concerns lingered that the US Federal Reserve would keep raising interest rates to combat inflationary pressures, an easing dollar helped gold edge up for the week.

High interest rates make gold less desirable as an inflation hedge and make it more costly to hold the non-yielding asset.

We expect gold to trade lower towards Rs 55,540, a break of which could prompt the price to move lower to Rs 55,400.

Nirpendra Yadav, Senior Research Analyst, Swastika Investmart

Gold remained range-bound as the benchmark US treasury yield gained, supporting the dollar index, which kept the prices of precious metals in a narrow range on March 2. However, better US unemployment claims and better China's manufacturing PMI are increasing the expectation of higher inflation.

On March 3, Precious metals may witness selling pressure at resistance levels. Gold has resistance at Rs 56,250 and support at Rs 55,500. Silver has resistance at Rs 64,800 and support at Rs 63,500.

NS Ramaswamy, Head of Commodities, Ventura Securities

Comex gold is trading higher after hawkish statements from the Federal Reserve officials helped provide more clarity on the path of monetary policy this year.

The dollar index is trading below 105 level, supporting gold prices. Comex gold has support near $1,836, while resistance is near $1,852.

(With agency inputs)

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