Gold Prices Today: Yellow metal to remain volatile ahead of US jobs data, high inflation to lend support

Gold market stays volatile

Gold prices were steady on February 4 in the international markets and are set for a weekly gain as a weaker dollar, concerns over stubborn inflation and tensions surrounding Ukraine lifted demand for the safe-haven bullion.

At the Multi-Commodity Exchange (MCX), gold contracts were trading 0.05 percent higher at Rs 47,939 for 10 grams at 9.18 am and silver was up 0.39 percent to trade at Rs 60,970 a kilogram.

Gold prices gained on account of weaker dollar and soft bond yields as services PMI data still hovered around 50-levels. Also rate hike from BoE helped white metal to gain against dollar index. Technically, gold is in the range of $1780 and $1810 levels and it needs to break this range for further movement. ADX on intraday charts is suggesting that bulls have control and any spike above $1812 will ignite the unmoved. Day traders are advised to keep their exposure low as NFP data in evening will fuel the volatility, said Vidit Garg, Director at MyGoldKart.

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Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart

Gold and silver fell after US unemployment data was released which was stronger than forecasted. Bank of England's monetary policy also put pressure on precious metals as they increased the key interest rate to 0.50% to control rising inflation. The European central bank also handed down its policy, however, it kept the interest rate unchanged and estimated that inflation may come down by the end of this year. The US 10-year bond yield also increased to 1.84% which is also putting pressure on the prices of gold and silver. The level of Rs 48100 is key resistance in gold and if it breaks this level then Rs 48500 could be seen in today's session whereas Rs 47400 will be the crucial support.

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold trades marginally higher near $1807/oz after a 0.3% decline yesterday. Gold trades higher supported by weaker US dollar, mixed economic numbers, inflation concerns and geopolitical risks. However, weighing on price is higher bond yields amid hawkish stance of major central banks. Gold may remain in a range near $1800/oz amid mixed factors however tightening expectations may keep pressure on prices.

Manoj Kumar Jain of Prithvi Finmart Commodity Research

Gold and silver plunged on February 3 amid sharp gains in the US bond yields and raising interest rates by the Bank of England. Both the precious metals settled on a weaker note in the international markets. Gold April futures contract settled at $1804.10 per troy ounce with a loss of 0.34% and silver March futures contract settled at $22.38 per troy ounce with a loss of 1.47%. We expect weakness in the dollar index. Global inflation fears and geo-political tensions continue to support gold and silver prices. Both precious metals are likely to remain volatile in today’s session ahead of the US job reports.

Gold has support at $1792-1784 and resistance at $1814-1828 per troy ounce while silver has support at $22.10-21.84 per troy ounce and resistance at $22.70-23.00 per troy ounce. At MCX, gold has support at Rs 47770-47550 and resistance at Rs 48080-48220 while silver has support at Rs 60200-59900 and resistance at Rs 61100-61750. We suggest buying gold on dips around Rs 47750 with a stop loss of Rs 47550 (on a closing basis) for target of Rs 48100 and silver around Rs 60300 with a stop loss of Rs 59800 (on a closing basis ) for target of Rs 61700.

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