Gold Prices Today: Yellow metal may head lower amid hawkish Fed remark, soaring inflation, stronger dollar

Gold, Gold Prices, Yellow Metal

Gold prices slipped on February 11 in the international markets as a stronger-than-expected US inflation reading and hawkish comments from a Federal Reserve official ramped up odds for a hefty interest rate hike next month, sending Treasury yields higher.

At the Multi-Commodity Exchange (MCX), gold contracts were trading lower by 0.42 percent at Rs 48,748 for 10 grams at 9.35 am and silver fell 1.08 percent to trade at Rs 62,585 a kilogram.

The US CPI and Core CPI beat the forecast figure and rose to 0.6 percent in January, ramping up the demand for safe haven to hedge against rising inflation.

The RBI also handed down its monetary policy meeting where the interest rate has been kept unchanged. The rising inflation may support gold and silver prices in the coming days and the buying momentum in precious metals is likely to continue today.

Gold has resistance at Rs 49,000 and above this level it may move towards Rs 49,450. It has immediate support at Rs 48,500. Silver has resistance at Rs 63,700 and support at Rs 62,400, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.

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Manoj Kumar Jain of Prithvi Finmart Commodity Research

Gold and silver extended gains in early session but after the US inflation hit a record 40-year high, it gave up early session gains. Both the precious metals settled on a slightly positive note in the international markets.

Gold April futures contract settled at $1837.40 per troy ounce with a gain of 0.04 percent and silver March futures contract settled at $23.52 per troy ounce with a gain of 0.78 percent. Due to weakness in the rupee both the precious metals settled on a positive note in the domestic markets.

We expect the hawkish Federal Reserve remark on hotter-than-expected inflation and strength in the dollar. US bond yield could pressure both precious metals in today’s session. Gold could test its support levels of $1810 per troy ounce and silver could test $23 per troy ounce levels.

At MCX, gold has support at Rs 48,800-48,550 and resistance at Rs 49,050-49,200, while silver has support at Rs 62,800-62,220 and resistance at Rs 63,660-64,100. We suggest selling gold below Rs 48,900 with a stop loss of Rs 49,100 for target of Rs 48,500 and silver below Rs 63,100 with a stop loss of Rs 63,660 on a closing basis for target of Rs 62,000.

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