Gold was trading flat in India as well as the international market on March 2 morning after a slew of economic data added to investor concerns that interest rates could stay higher for longer than expected.
At 9:59 am, gold was down 0.03 percent on the Multi Commodity Exchange (MCX) at Rs 55,815 for 10 grams, while silver was down 0.43 percent at Rs 63,661 per kilogram.
Spot gold was flat at $1,836.69 a troy ounce at 0046 GMT after hitting a one-week peak on March 1. US gold futures eased 0.1 percent to $1,843.40.
Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities
Gold prices edged lower on March 2. Spot gold at Comex was trading down by 0.13 percent at $1,833 in the morning trade.
Gold retreated from the previous day’s high amid a pullback in US yields. Benchmark US 10-year treasury yields rose above 4 percent for the first time since November on March 1 on the possibility of higher rates for a longer period.
The US Federal Reserve officials were divided on whether recent high inflation data and a hot jobs market would require even more restrictive interest rates or just patience in maintaining tight monetary policy for a longer period of time. The market expects the Fed's target rate to peak at 5.465 percent in September from the current range of 4.50 percent to 4.75 percent.
We expect gold prices to correct further to $1,823-1,810 on March 2. Comex spot gold has support at $1,823-1,805 and resistance at $1,850-1,865.
On MCX, April gold future has support at Rs 55,580-55,300 per 10 gram and resistance at Rs 56,180 per 10 gram.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver saw further short covering and bargain buying at lower levels on March 1 after downbeat US ISM manufacturing PMI data.
A weak dollar index also supported the bullion. The dollar index saw profit taking after strength in the Chinese Yuan. However, strength in the US 10-year bond yields restricted gains in precious metals. The US 10-year bond yield tested 4 percent in anticipation of further rate hikes.
We expect gold and silver to remain volatile on March 2. Gold has support at $1,820-1,808 and resistance at $1,842-1,854. Silver has support at $20.71-20.55 and resistance at $21.05-21.20.
In rupee terms, gold has support at Rs 55,580-55,410 and resistance is at Rs 55,980, 56,150. Silver has support at Rs 63,150-62,620 and resistance is at Rs 64,290–64,680.
NS Ramaswamy, Head of Commodities, Ventura Securities
Comex gold is trading lower after two days rally as the dollar strengthened after profit booking. Higher-than-expected manufacturing data on March 1 supported the dollar against major currencies.
The dollar index is trading near 104.5. Comex gold has support near $1,833 while resistance is at $1,851.
(With agency inputs)
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