Gold Prices Today: Yellow metal to edge lower amid volatility, support around Rs 53,700

Gold, gold prices

Gold prices were flat on Friday in the international markets and set for a weekly loss, pressured by expectations of higher interest rates for a longer period by the US Federal Reserve.

Spot gold was steady at $1,776.85 per ounce as of 0028 GMT, having fallen more than 1 percent this week. US gold futures were down 0.1 percent at $1,786.80.

At 09:38 am, gold contracts were trading 0.02 percent higher on the Multi Commodity Exchange (MCX) at Rs 54,120 for 10 grams. Silver had shed 0.29 percent at Rs 67,621 a kilogram.

Gold and silver prices were sharply lower on Thursday due to profit-taking from shorter-term futures traders amid sharp gains in the US dollar index. A still-hawkish US central bank also contributed to the weakness in the precious metals.

The European Central Bank and the Bank of England monetary policy on Thursday raised their main interest rate by 0.5 percent, in tandem with the US Federal Reserve's half-point rate hike a day before. The central banks of Switzerland and Norway also raised their interest rates Thursday but in smaller increments of policy tightening. The U.S. retail sales and core retail sales data released on Thursday were also below expectations and also pushed both precious metals lower.

We expect bullion prices to remain volatile in today’s session. Gold has support at $1768-1755 while resistance is at $1792-1805. Silver has support at $22.80-22.55, while resistance is at $23.48-23.65. In rupee terms gold has support at Rs 53,820-53,650, while resistance is at Rs 54,280, 54,450. Silver has support at Rs 67,250-66,880, while resistance is at Rs 68,520–68,980.

Precious metals slipped yesterday as the Fed outlook remained more hawkish than expected. US interest rates would likely peak higher than expected even as Fed hiked the rate by a small basis point than earlier. The US dollar index gained 0.58 percent over Fed's hawkish comment putting pressure on bullion prices.

Today precious metals may extend the losses of the previous day. Gold has resistance at Rs 54500 and support at Rs 53700. Silver has resistance at Rs 68800 and support at Rs 67200.