Gold Prices Today: Sell yellow metal on rise around Rs 57,100; support around Rs 56,680-56,500

Gold prices were little changed on Friday in the international markets and were heading for their second straight weekly decline, as prospects of more interest rate hikes by the US Federal Reserve dented bullion’s appeal.

Spot gold was flat at $1,861.11 per ounce, as of 00:43 GMT. For the week so far, the metal was down 0.2 percent. US gold futures fell 0.3 percent to $1,873.

At 10:03 AM, gold was trading 0.52 percent lower on the Multi Commodity Exchange (MCX) at Rs 56,555 for 10 grams, while silver was trading marginally lower by 0.98 percent at Rs 66,374 per kilogram.

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Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities Ltd

COMEX gold prices hold near a one-month low of $1,870 per troy ounce and are headed for a marginal weekly decline, amid a drumbeat of central bankers calling for further tightening ahead. Market pricing for US rates to peak in July inched higher as investors digested the fresh data, particularly a robust labour market. Now interest rate futures are pricing in fed funds to peak at 5.15 percent in July, compared with 4.9 percent seen before the US Labour data. US treasury yields pared early losses and rose across the curve, with the 10-year yield rising to 3.66 percent. The recent uptick in yields has taken some steam off the non-yielding yellow metal. Now the focus might shift towards US CPI data due next week, to gauge the Fed’s future course of action.

NS Ramaswamy, Head of Commodities, Ventura Securities

Gold on February 9 was trading on a bearish note, with Comex Gold trading between $1,889.93-1,862.21 and MCX Gold trading between Rs 57,419-56,835. The Dollar Index edged up after hitting the lows near 102.51. The Department of Labour released unemployment claims data on February 9, which shows an increased number of Americans filing new claims for unemployment benefits, more than expected last week. China's gold reserves rose to 65.12 million ounces at the end of January, up 480,000 ounces from the end of December 2022, data from the State Administration of Foreign Exchange showed.

Traders will be eying today's Consumer Sentiment data and most importantly next week's inflation data. On MCX, the immediate resistance for gold is at Rs 57,200, and immediate support is near Rs 56,300. On Comex, immediate resistance is near $1875, and immediate support is near $1835 levels.

Manoj Kumar Jain, Prithvi Finmart Commodity Research

Gold and silver prices on February 9 settled on a weaker note in the international markets. Gold April futures contract settled at $1,878.50 per troy ounce, down by 0.65 percent and the silver March futures contract settled at $22.14 per troy ounce, down by 1.24 percent. Domestic markets also settled on a weaker note.

Despite weakness in the dollar index and an increase in the US unemployment claims, precious metals are unable to get support. The dollar index cooled off on Thursday after recovery in the euro and the US unemployment claims surged to 1,96,000 last week, against expectations of 1,91,000 claims.

We expect gold prices to test its support level of $1,855 per troy ounce in the upcoming sessions. Gold has support at $1,864-1,855, while resistance is at $1,888-1,900 per troy ounce. Silver has support at $21.84-21.55, while resistance is at $22.40-22.78 per troy ounce.

At MCX, gold has support at Rs 56,680-56,500 and resistance at Rs 57,040-57,250 while silver has support at Rs 66,650-65,800 and resistance at Rs 67,500-68,100. We suggest selling gold on rise around Rs 57,100 with a stop loss of Rs 57350 for a target of Rs 56,500.

With agency inputs

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