Gold Prices Today: Precious metals to remain under pressure as US Fed may stay hawkish

Gold prices edged down on Monday in the international markets as the dollar firmed up, while investors awaited this week's US inflation data for cues on the Federal Reserve's interest rate hike path.

Spot gold was down 0.2 percent at $1,861.76 per ounce, as of 0032 GMT. US gold futures eased 0.1 percent to $1,872.40.

At 9:56am, gold was trading 0.02 percent lower on the Multi Commodity Exchange (MCX) at Rs 56,728 for 10 grams, while silver was trading lower by 0.59 percent at Rs 66,270 per kilogram.

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Manoj Kumar Jain, Prithvi Finmart Commodity Research

Gold and silver prices on February 10 settled on a weaker note in the international markets. Gold April futures contract settled at $1,876.50 per troy ounce, down by 0.11 percent and silver March futures contract settled at $22.01 per troy ounce, down by 0.60 percent. Domestic markets also settled on a weaker note.

According to the market experts, persistent higher US inflation could force the US Federal reserve to maintain its hawkish stance on monetary policy and could further increase interest rates, weighing bullion prices. Gold prices could test its support level of $1,855 per troy ounce and silver could also test $21.80 per troy ounce levels ahead of the US inflation data. Gold has support at $1,864-1,855, while resistance is at $1,888-1,900 per troy ounce. Silver has support at $21.80-21.55, while resistance is at $22.30-22.70 per troy ounce.

At MCX, gold has support at Rs 56,500-56,280 and resistance at Rs 56,920-57,080, while silver has support at Rs 66,100-65,550 and resistance at Rs 67,220-67,800. We suggest selling gold on rise around Rs 56,950 with a stop loss of Rs 57,250 for target of Rs 56,300.

NS Ramaswamy, Head of Commodities, Ventura Securities

COMEX gold is trading lower on early trade as traders awaited more cues on the US economy from key inflation data due this week. The Federal Reserve recently signaled that it plans to keep raising interest rates even as inflation softened in recent months. Bullion prices were also pressured by rising short-term Treasury yields, as an inversion in the US yield curve reached its deepest level since the 1980s. COMEX gold has support near $1,864 while resistance is at $1,882.

With agency inputs

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