Gold was trading a tad higher in India on January 12, with traders turning cautious ahead of the release of domestic as well as US inflation data that could influence the central banks Federal Reserve's policy path.
At 10.12 am, gold was trading 0.26 percent higher on the Multi Commodity Exchange (MCX) at Rs 55,839 for 10 grams. Silver added 0.63 percent at Rs 68,401 a kilogram.
In the international market, spot gold held its ground at $1,876.93 a troy ounce, while US gold futures rose 0.1 percent to $1,879.80.
Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel One
On January 11, gold ended little changed, as prices slipped marginally to $1,876.4 per ounce. The direction of prices will depend on the critical US inflation figures, which may also have an impact on the Federal Reserve's course of action. It seems likely that the Fed will increase policy rates by 25 basis points at its forthcoming meeting amid expectations of a slow pace of hikes.
One basis point is one-hundredth of a percentage point.
We expect gold to trade lower at Rs 55,430, a break of which can drag the price down to Rs 55,240.
Deveya Gaglani, Research Analyst, Axis Securities
Gold took a breather in the previous session, failing to hold the day's high, and settled at around Rs 55,720. The recovery in the dollar index stalled the rally in bullion.
Gold is trading near an eight-month high of $1,880 due to a decline in the 10-year yield, which is trading at around 3.5 percent. Investors and traders will await US CPI data due later in the evening.
Investors are betting that the December CPI report might see prices cool down, supporting the case for a less aggressive tightening from the central bank, which will be supportive of gold.
In the spot, Comex resistance is placed around $1,886 and the immediate support is at $1,820.
(With agency inputs)
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