Gold was trading a tad lower in India on March 8 after prices slipped to a one-week low in the international market following US Federal Reserve chair Jerome Powell’s remarks that interest rates might need to go higher than expected to curb inflationary pressures.
At 9.54 am, gold was down 0.17 percent on the Multi Commodity Exchange (MCX) at Rs 54,930 for 10 grams, while silver was down 0.84 percent at Rs 61,685 per kilogram.
Spot gold was down 0.1 percent at $1,811.83 a troy ounce at 0128 GMT after falling more than 1 percent in the previous session. US gold futures fell 0.2 percent to $1,816.30.
Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel One
Gold prices came under pressure after settling last week on a higher note, as prices drifted lower on March 8.
Powell delivered his first testimony before the Senate Banking Committee and would on March 8 testify in front of the House Financial Services Committee.
Investors are still concerned whether the Fed will resume big hikes as a result of recent strong economic indicators.
For fresh hints about the US Central Bank's monetary policy, market players eagerly anticipate the release of the US jobs data for February on March 10.
We expect gold to trade lower towards Rs 54,720, a break of which could prompt the prices to move lower to Rs 54,510.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver prices were sharply lower on March 8, as the metals market came under pressure following hawkish comments by the US central bank. On the other hand, the US dollar rallied sharply on Powell’s remarks and hit a three-month high. However, US Treasury yields did not react much to Powell’s comments.
Traders and investors are now looking forward to the US employment situation report scheduled this week.
We expect gold and silver prices to remain volatile ahead of the US job data. Gold has support at $1,802-1,788, while resistance is at $1,828-1,840. Silver has support at $20.00-19.81, while resistance is at $22.40-21.55.
In rupee terms, gold has support at Rs 54,780-54,510, while resistance is at Rs 55,280, 55,510. Silver has support at Rs 61,550-61,120 and resistance at Rs 62,790–63,380.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver crashed after Powell pointed towards larger rate hikes. Gold and silver prices settled on a weaker note in the international market.
April gold futures contract settled at $1,820 a troy ounce, down by 1.87 percent, and May silver contract settled at $20.20, down 4.45 percent.
We expect gold and silver prices to remain volatile ahead of the US ADP non-farm payroll data and could face steep resistance at higher levels.
Gold has support at $1,804-1,788, while resistance is at $1,834-1,845. Silver has support at $20.00-19.66 and resistance at $20.50-20.84.
On MCX, gold has support at Rs 54,850-54,660 and resistance at Rs 55,220-55,440 while silver has support at Rs 61,650-61,100 and resistance at Rs 62,750-63,300.
We suggest selling gold on rise around Rs 55,250 with stop loss of Rs 55,480 for a target of Rs 54,850.
NS Ramaswamy, Head of Commodities, Ventura Securities
Comex gold is trading lower after Powell signalled more interest rate hikes than expected. The dollar index is trading above 105.5 level, putting pressure on the yellow metal. Comex gold has support near $1,805, while resistance is near $1,825.
(With agency inputs)
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