Gold Prices Today: Strong US dollar, hawkish Fed likely to put pressure on yellow metal, support around Rs 55,600

Gold, Gold prices

Gold prices inched up on Wednesday in the international markets as investors awaited the minutes of the US Federal Reserve's latest policy meeting that could offer clues on further interest rate hikes.

Spot gold was up 0.1 percent at $1,836.43 per ounce, as of 0056 GMT. US gold futures firmed 0.2 percent to $1,845.20.

At 09:51 am, gold was down 0.04 percent on the Multi Commodity Exchange (MCX) at Rs 56,144 for 10 grams, while silver was trading lower by 0.3 percent at Rs 65,851 per kilogram.

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Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities

Gold prices traded firm on Wednesday, as investors awaited the minutes of the US Federal Reserve's latest policy meeting that could offer clues on further interest rate hikes. Spot Gold prices at Comex were trading up by 0.15% at $1845 per ounce in morning trade. Gold prices traded in a choppy range with a negative bias as a pullback in the US dollar capped an upside in yellow metal and bond yields. Benchmark 10-year note yields hit their highest since November last year.

We expect gold prices to consolidate in the range of $1,825-$1,850 before the release of today’s FOMC meeting minutes. Comex spot gold has supports at $1,823-$1,805 per ounce and resistances at $1,855-$1,870 per ounce for the day. MCX Gold April future has support at Rs 55,850 per 10 gram and resistance at Rs 56,540 per 10 gram.

Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One

Gold prices on Tuesday slipped lower, as it lost 0.37 percent and concluded at $1,834.3 per ounce. The US Federal Reserve's most recent policy meeting's minutes, which may provide information about future interest rate increases, are eagerly expected by investors.

The market anticipates the US central bank to keep interest rates above 5 percent throughout the year. The US central bank increased rates by 25 basis points (bps) in its recent meeting. US business activity unexpectedly rebounded in February, reaching its highest level in eight months, according to a survey on Tuesday, which also showed inflation subsiding.

Given the dollar's continued strength and the likelihood that the US Fed will continue raising interest rates, the upside potential for the yellow metal appears to be limited.

Nirpendra Yadav, Senior Research Analyst at Swastika Investmart

Precious metals prices remained range-bound on February 21 as investors awaited more cues from the Fed meeting minutes to be released later in the day. Better US economic data increases the expectation of higher interest rates. US benchmark Treasury yields rose to 3.9 percent, which supported the dollar index and put pressure on bullion prices.

Day trend in bullion may remain range-bound, with selling pressure at the upper end of the range. Gold has resistance at Rs 56,500 and support at Rs 55,600. Silver has resistance at Rs 66,500 and support at Rs 64,700.

Manoj Kumar Jain, Prithvi Finmart Commodity Research

Gold and silver prices on February 21 settled on a mixed note in the international markets. Gold April futures contract settled at $1,842.50 per troy ounce, down by 0.42 percent while the silver March futures contract settled at $21.89 per troy ounce, up by 0.34 percent. Domestic markets also settled on a mixed note.

Gold and silver showed high volatility ahead of the FOMC February meeting minutes. Precious metals also showed volatility after the speech of Russian President Putin to both houses of the Parliament just after a surprise visit by US President Biden to Ukraine on Monday. Anticipation of further escalation of Russia-Ukraine tensions supported precious metal prices. However, The US economic data released on Tuesday was again better-than-expected and supported the dollar index and US bond yields.

Strength in the dollar is restricting gains of precious metals but recovery in base metal prices is supporting silver prices in the international markets.

We expect gold and silver prices to remain volatile in todays’s session ahead of the FOMC minutes and could hold their support levels. Gold has support at $1,830-$1,818, while resistance is at $1,854-$1,868 per troy ounce. Silver has support at $21.64-21.30, while resistance is at $22.20-22.44 per troy ounce.

At MCX, gold has support at Rs 56,000-55,770 and resistance at Rs 56,350-56,580 while silver has support at Rs 65,550-65,100 and resistance at Rs 66,660-67,000. We suggest buying silver on dips around Rs 65,550 with a stop loss of Rs 65,100 for a target of Rs 66,600.

NS Ramaswamy, Head of Commodities, Ventura Securities

COMEX gold is trading a little higher as market participants are cautious ahead of the minutes of the Federal Reserve’s February meeting. The dollar index is trading near the 104 level. The yellow metal was trading in a tight range for the week amid renewed concerns over more hawkish moves by the Fed, especially after stronger-than-expected inflation readings for January.

COMEX gold has support near $1,835 and resistance at $1,852.

With agency inputs

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