Gold Prices Today: Yellow metal to remain range-bound, to find support from less hawkish Fed

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Gold rose more than 1 percent on Thursday in the international markets as a contraction in the US economy boosted its safe-haven lure and helped to extend gains driven by a less aggressive tone from the Federal Reserve chairman.

Spot gold extended gains on the data, and was last up 1.1 percent at $1,752.39 per ounce by 1:59pm EDT (1759 GMT), helped along by a subsequent slide in US Treasury yields.

At 9.23 am, gold contracts were trading 0.14 percent higher on the Multi-Commodity Exchange (MCX) at Rs 51,374 for 10 grams and silver added 0.62 percent at Rs 57,978.

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Precious metals gained due to the less hawkish tone of the US Fed and kept the interest rate in line with expectations. The US benchmark treasury yield slipped near 3 percent after the Fed meeting. Yesterday released US advance GDP data hinted slow-down in the economy as data remained weaker than forecast. Today prices of precious metals may remain supportive and any correction could be a good buying opportunity. Gold has support at Rs 51,000 and resistance at Rs 51,500. Silver has support at Rs 56,300 and resistance at Rs 58,000.

Gold prices traded steady on Friday with spot gold prices at COMEX were trading near $1754 per ounce after witnessing sharp rise in previous trading. Gold prices rallied on safe haven buying after US economy technically slipped into recession with GDP contracting for the second month. The dollar index fell to six week lows against the yen while Treasury yields fell boosting buying in the yellow metal. The lesser hawkish tone from US Fed was the trigger for gold bulls to lift their horns.

We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1740 and resistance at $1770 per ounce. MCX Gold August support lies at Rs. 50900 and resistance at Rs. 51,600 per 10 grams.