Gold Prices Today: Yellow metal to stay volatile ahead of FOMC meeting minutes, support around Rs 50,950

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Gold prices were flat on Monday in international markets as the US dollar and yields firmed after strong jobs data raised expectations of aggressive rate hikes, offsetting support from safe-haven demand fuelled by a worsening Ukraine crisis.

On the Multi-Commodity Exchange (MCX), gold contracts were down 0.13 percent and were trading at Rs 51,275 for 10 gram at 09:35 am and silver shed 0.21 percent to Rs 66,590 a kilogram.

Gold and silver prices are likely to remain down as rebound in the US dollar and rising bond yield pressure precious metals. The US Fed has a hawkish outlook and FOMC meeting minutes, to be released in the middle of this week, can weigh on prices of precious metals. Gold has resistance at Rs 52,400 and support at Rs 51,200. Silver has resistance at Rs 67,500 and support at Rs 65,500, said Nirpendra Yadav, senior commodity research analyst at Swastika Investmart.

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Gold prices are in profit booking zone due to stronger dollar index and growing possibility of de-escalation after Russia promised to scale down military operations around Kyiv. However, the skepticism around peace talks are keeping gold prices well above the level of $1900 in comex.

Buy zone near Rs 51500 for target of Rs 51800

Sell zone below Rs 51300 for target of Rs 51000

The market is very volatile nowadays due to the Russia-Ukraine crisis. As per technical chart, gold and silver are showing strength, momentum indicator RSI is also signalling the same in hourly and daily charts. Traders are advised to create fresh buy positions near given support levels and should focus on important technical levels.

June Gold closing price Rs 51606, Support 1 - Rs 51480, Support 2 - Rs 51250, Resistance 1 - Rs 52750, Resistance 2 - Rs 52900.

May Silver closing price Rs 66733, Support 1 - Rs 66500, Support 2 - Rs 66100, Resistance 1 - Rs 67000, Resistance 2 - Rs 67500.

Gold ended under significant pressure last week despite the two-year and 10-year Treasury yields inverting for the first time since 2019. Many market participants view this as a possible red flag that recession could be around the corner. Gold and silver also settled at lows last week due to strong US job data, firm dollar and rising US bond yields. The unemployment rate dropped to 3.6%, lowest since February 2020. However, Russia-Ukraine conflicts and lockdown in China due to rising COVID cases supported gold and silver at lower levels.

We expect both the precious metals to remain volatile this week ahead of the FOMC meeting minutes. Gold has support at $1910-1895, while resistance at $1940-1950. Silver has support at $24.35- 24.00, while resistance is at $24.95-25.24. In rupee terms gold has support at Rs 51,240–50,950, while resistance is at Rs51,950–52,220. Silver has support at Rs 67,150- 66,680 while resistance is at Rs 68,100–68,550.

Gold and silver prices on April 1 settled on a weaker note in international markets. Gold April futures contract settled at $1,923.85 per troy ounce, down 1.30% and silver May futures contract settled at $24.75 per troy ounce, down 1.51%. Domestic markets also settled on a weaker note. We expect both the precious metals to remain volatile this week ahead of the FOMC meeting minutes. Gold has support at $1914-1900 while resistance is at $1933-1945 per troy ounce. Silver has support at $24.40-24.00 while resistance is at $25.10-25.55 per troy ounce.

At MCX, gold has support at Rs 51440-51200 and resistance at Rs 51800-51950 while silver has support at Rs 66300-65880 and resistance at Rs 67100-67660. Gold is expected to trade in the range of Rs 51330-51850 and silver could trade in the range of Rs 66100-67200 in today's session.