Gold was trading marginally higher in domestic and international markets on April 17, as investors assessed the US Federal Reserve’s stance on monetary policy.
At 10.16 am, the June contract on the Multi Commodity Exchange of India was at Rs 60,381 for 10 grams, up 0.1 percent. COMEX gold was at around $2,017.80 a troy ounce, up 0.1 percent from the previous close.
Prices slumped 2 percent on April 14 after Fed governor Christopher Waller said the American central bank had not made much progress in controlling inflation in the country and interest rates needed to rise further.
The comments came at a time when the market was anticipating a pause in the Fed’s rate-hike cycle.
“Gold’s attempt at record territory failed after both core retail sales readings declined less than expected and hawkish Fed comments raised the risk that the Fed could do more tightening beyond May and that rates might need to stay higher for longer,” Ed Moya, senior market analyst at OANDA, Americas, said in a note.
“In order for inflation to be conquered, we will need to see economic pain and that should support the bullish case for gold,” said Moya, adding in the short-term gold prices could remain volatile.
At home, domestic gold rates are likely to remain high on robust demand from consumers ahead of Akshaya Tritiya and amid the summer wedding season.
Gold prices today
Gold may test the support at $1,975 on Comex and the next support is at $1,950, while resistance is at $2,020 followed by $2,035, according to Praveen Singh, currencies and commodities analyst at Sharekhan by BNP Paribas.
On the MCX, the precious metal is expected to trade higher towards Rs 61,020, a break of which could prompt the price to move higher to Rs 61,34, said Prathamesh Mallya, AVP Research, non-agri commodities and currencies at Angel One.
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