Gold Prices Today: Precious metals to remain volatile ahead of US unemployment data

Gold, Gold prices

Gold prices edged lower on February 9 in the international markets, as the dollar steadied and after US Federal Reserve officials said more interest rate increases were likely to curb inflation.

Spot gold was down 0.1 percent at $1,874.58 per ounce, as of 0054 GMT. US gold futures fell 0.2 percent at $1,886.20.

At 09:50 AM, gold was trading 0.07 percent higher on the Multi Commodity Exchange (MCX) at Rs 57,256 for 10 grams, while silver was trading marginally lower by 0.02 percent at Rs 67,618 a kilogram.

Gold and silver prices on February 8 settled on a positive note in the international markets. Gold April futures contract settled at $1,890.70 per troy ounce, up by 0.31 percent and silver March futures contract settled at $22.42 per troy ounce, up by 1.08 percent. Due to strength in the rupee domestic markets settled on a mixed note.

Gold and silver prices corrected from their recent highs last week after upbeat US non-farm payroll data. Gold prices are trading below $1900 per troy ounce and silver is also trading below $23 per troy ounce levels.

We expect gold and silver to remain volatile in today’s session ahead of the US unemployment claims data. Gold has support at $1878-1864, while resistance at $1900-1914 per troy ounce. Silver has support at $22.10-21.84, while resistance is at $22.78-23.00 per troy ounce.

At MCX, gold has support at Rs 57000-56770 and resistance at Rs 57440-57650 while silver has support at Rs 67220-66650 and resistance at Rs 68100-68550. We suggest buying silver around Rs 67100 with a stop loss of Rs 66600 for target of Rs 68100.

Gold on February 8 was trading on a flat note, with Comex Gold trading between $1886.29-1864.20 and MCX Gold trading between Rs 57384-56986. The dollar showed some recovery yesterday from lows of 102.88. Fed officials yesterday hinted towards more rate hikes in an effort to cool inflation, although none were ready to suggest a more aggressive monetary policy stance from the Federal Reserve. Market participants are expecting Fed's target peak rate at 5.132 percent in July, from a current range of 4.5 percent to 4.75 percent. President Joe Biden yesterday said that he did not believe the US economy would fall into recession either this year or next year.

On MCX, immediate resistance for gold is at Rs 57860 and immediate support is near Rs 56740. On Comex, immediate resistance is near $1900 and immediate support is near $1858 levels.

Gold and silver prices were nearly flat on Wednesday. Initially, both the precious metals received a modest boost from a slightly lower US dollar index and firmer crude oil prices. However, gains in both metals were curbed amid rising US Treasury yields.

We expect gold and silver to remain volatile in today’s session ahead of the US unemployment data. Gold has support at $1862-1851 while resistance is at $1886-1898. Silver has support at $22.05-21.88, while resistance is at $22.55-22.72. In rupee terms, gold has support at Rs 56,920-56,660, while resistance is at Rs 57,420, 57,570. Silver has support at Rs 66,950-66,420, while resistance is at Rs 67,980–68,450.