Gold prices inched lower on January 17 in the international markets weighed by an uptick in the dollar, although hopes of slower interest rate hikes by the Federal Reserve capped further losses.
At 9.35 am, gold was trading 0.3 percent higher on the Multi Commodity Exchange (MCX) at Rs 56,495 for 10 grams after hitting a lifetime high on January 13 in intraday trade. Silver added 0.71 percent at Rs 69,918 a kilogram.
Spot gold was down 0.4% at $1,910.48 per ounce, as of 0304 GMT. On Monday, prices hit $1,929, the highest since late-April 2022. US gold futures fell 0.5% to $1,912.70.
Ravindra V. Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities
COMEX Gold is trading lower in early session today by around 0.50% at $1913/oz. Last week the yellow metal rose for the fourth week in a row, to a nine-month high of $1,925 per troy ounce, underpinned by sharp plunge in dollar index and weakness in US treasury yields. Real rates in US, which is widely seen as an opportunity cost for holding the yellow metal, declined towards 1.2% from a recent high of 1.6%, boosting the appeal for the gold.
Bullish sentiment in gold has also been supported by reports that China has boosted gold reserves for a second consecutive month. Dollar weakness might persist that might support gold, as market participants are ramping up bets that the Bank of Japan will exit its ultra-dovish stance.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver prices were mildly negative on Monday, as the dollar index recovered from its lows and crossed 102 mark once again, thus limiting the gains of precious metals. The US 10-year bond yields also recovered from the lows and crossed 3.50% level. Despite this, gold prices were able to hold above $1900 per troy ounce and silver at $24 per troy ounce levels. Safe haven buying also emerged in gold after US Treasury Secretary Janet Yellen said that the US would likely to hit its statutory debt limit on January 19.
We expect gold and silver to remain volatile in today’s session. Gold has support at $1895-1882 while resistance is at $1928-1940. Silver has support at $23.85-23.65, while resistance is at $24.40-24.62. In rupee terms, gold has support at Rs 56,150-55,780, while resistance is at Rs 56,680, 56,780. Silver has support at Rs 69,150-68,520, while resistance is at Rs 70,120–70,680.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver prices on January 16 settled on a slightly weaker note in the international markets. Gold February futures contract settled at $1,921.70 per troy ounce, down by 0.09% and silver March futures contract settled at $24.37 per troy ounce, down by 0.18%. Due to weakness in the rupee, domestic markets settled on a positive note.
We expect gold and silver to remain volatile in today’s session and could hold $1900 per troy ounce and $24 per troy ounce levels. Gold has support at $1908-1792, while resistance at $1934-1948 per troy ounce. Silver has support at $24.10-23.84, while resistance is at $24.70-25.00 per troy ounce.
At MCX, gold has support at Rs 56300-56080 and resistance at Rs 56650-56840 while silver has support at Rs 69200-68750 and resistance at Rs 70200-70800. We suggest buying gold on dips around Rs 56300 with a stop loss of Rs 56080 for target of Rs 56700 and recommend buying silver on dips around Rs 69200 with a stop loss of Rs 68660 for target of Rs 70400.
(With agency inputs)
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