Gold prices were steady in domestic markets on April 19, while they fell slightly in international markets as investors await further cues from the US Federal Reserve as the central bank is expected to raise interest rates at its upcoming monetary policy meeting in May.
At 10:39 am, the price of gold on COMEX was at $2,015.75 per ounce, down 0.2 percent from the previous close. The June gold contract on Multi Commodity Exchange of India was at Rs 60,492 per 10 grams, largely flat from the previous close.
The May silver contract on MCX was at Rs 75,303 per kilograms, flat from the previous closing price.
Amid talks about the US Fed pausing its rate-hike cycle in May, recent economic data have suggested that the country's economy is still resilient and that the central bank may have more headroom to raise rates.
Moreover, US Fed Governor Christopher Waller had said inflation in the US is still high and the Fed has not made complete progress against combatting it. This soured the mood of gold investors significantly as prices struggled to rise further.
"Gold will have its day in the sun, but it might have to wait a little while longer," Ed Moya, senior market analyst at OANDA, Americas, said in a note. "Gold is trying to hold onto the $2,000 level, but critical support may come from the $1,970 region (on COMEX)", he added.
Focus will now turn to the release of the Beige Book economic report due on April 19. Fed Governors Christopher Waller and Lisa Cook are set to speak on April 20 and 21, respectively. Investors will look for cues in the speeches for anything related to US' monetary policy and on inflation.
"We expect gold and silver prices to remain volatile in today’s session and gold could face steep resistance around $2,035 per troy ounce and silver could also face resistance around $25.70 per troy ounce levels," said Manoj Kumar Jain, director at Prithvi Finmart.
On the MCX, gold has support at Rs 60,220-60,000 and resistance at Rs 60,720-60,950. Silver contracts on MCX have support at Rs 74,750-74,200 and resistance at Rs 75,800-76,300, according to Jain. "We suggest selling gold on rise around Rs 60,650 with a stop loss of Rs 60,900 for the target of Rs 60,150, he added.
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