Gold prices inched lower on Thursday in international markets, pressured by expectations of aggressive interest rate hikes after the US Federal Reserve chief doubled down on the central bank's fight against inflation. Spot gold was down 0.2% at $1,832.91 per ounce by 0239 GMT. US gold futures fell 0.2% to $1,834.30.
At 9.33am, gold contracts were trading 0.29 percent lower at Rs 50,756 for 10 grams on the Multi-Commodity Exchange (MCX), while silver was down 0.81 percent to Rs 60,159 a kilogram.
Gold prices increased moderately as the benchmark treasury yield and US dollar index continued to decline. "As Powell predicts a likely recession on higher rate rises, early losses are offset by gold prices. He suggests doing everything he can to stop price rises, even if it means a rate hike of 100 basis points. With Powell's testimony at the Fed, the US front's flash manufacturing PMI data and unemployment claims will continue to be significant for gold and silver prices today. The notion that precious metal prices are range-bound suggests that there may be selling pressure near the range's upper end. Gold has resistance at Rs 51300 and support at Rs 50500. Silver has resistance at Rs 61300 and support at Rs 59800," said Nirpendra Yadav, senior commodity research analyst at Swastika Investmart.
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Tapan Patel, Senior Analyst (Commodities), HDFC Securities
Gold prices traded steady on Thursday with COMEX spot prices near $1834 per ounce in morning trade. The yellow metal is range bound trading below $1840 over aggressive Fed rate hike expectations and recession fears. Gold prices got some respite with dollar decline and weaker equity indices. Prices are expected to trade in the current range with lack of fresh triggers.
We expect gold prices to trade sideways to up for the day with COMEX spot gold support at $1820 and resistance at $1850 per ounce. MCX gold August support lies at Rs 50600 and resistance at Rs 51300 per 10 grams.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver prices eased on Wednesday after the Fed chairman's testimony and firming up of the dollar. Bullion traded in a narrow range as investors awaited fresh cues from top central banks on their monetary policy plans, especially from the US Federal Reserve.
Fed Chairman’s testimony was a reiteration of the central bank's commitment to bring down inflation with aggressive rate hikes that may send the economy into a recession. Geopolitical uncertainty and rising concerns of economic slowdown are likely to support precious metals. Gold has support at $1828-1816, while resistance is at $1852-1861. Silver has support at $21.10-20.85, while resistance is at $21.65-21.95.
In rupee terms, gold has support at Rs 50,540–50,210, while resistance is at Rs 50,980–51,240. Silver has support at Rs 60,120-59,550, while resistance is at Rs 61,380–61,710.
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