Gold Prices Today: Yellow metal likely to edge higher, witness short-covering bounce

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Gold prices ticked higher on Wednesday in the international markets as the dollar retreated from a one-month peak after US Federal Reserve Chair Jerome Powell did not revert to a more hawkish stance despite last week's stronger-than-expected jobs report.

Spot gold was up 0.1 percent at $1,876.49 per ounce, as of 0351 GMT. US gold futures firmed 0.2 percent at $1,888.10.

At 10:25am, gold was trading 0.07 percent lower on the Multi Commodity Exchange (MCX) at Rs 57,218 for 10 grams, while silver was trading flat at Rs 67,530 a kilogram.

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Rahul Kalantri, VP Commodities, Mehta Equities

Gold and silver stayed defensive around $1,870 and $22.40 respectively. In the last two days the yellow metal failed to rebound from $1,860, as market sentiment remained sluggish amid mixed signals from the Federal Reserve and the geopolitical front. Adding confusion to the metal traders’ minds could be the lack of major data/events, with the bullion remaining under the bear hug as the US treasury bond yields remained firm.

We expect gold and silver to remain volatile in today’s session. Gold has support at $1857-1845 while resistance is at $1884-1892. Silver has support at $22.05-21.88, while resistance is at $22.52-22.70. In rupee terms, gold has support at Rs 56,820-56,560, while resistance is at Rs 57,420, 57,570. Silver has support at Rs 66,750-66,220, while resistance is at Rs 67,850–68,380.

Nirpendra Yadav, Senior Research Analyst at Swastika Investmart

Precious metals gained as the US dollar index paused its three-day bullish move. Fed member Kashkari expects that a hot labor market will make it hard to bring down inflation, which may force the Fed to keep the interest rate high and increase the fear of recession.

Today's trend in precious metals may remain bullish. Gold has resistance at Rs 57500 and support at Rs 56800. Silver has resistance at Rs 68200 and support at Rs 66800.

Manoj Kumar Jain, Prithvi Finmart Commodity Research

Gold and silver prices on February 7 settled on a mixed note in the international markets. Gold April futures contract settled at $1,884.80 per troy ounce, up by 0.28% while silver March futures contract settled at $22.18 per troy ounce, down by 0.27%. Domestic markets settled on a positive note.

We expect some short covering bounce in gold and silver in today’s session. Gold has support at $1868-1855, while resistance at $1900-1910 per troy ounce. Silver has support at $21.88-21.65, while resistance is at $22.55-22.84 per troy ounce.

At MCX, gold has support at Rs 57000-56770 and resistance at Rs 57500-57780 while silver has support at Rs 67100-66650 and resistance at Rs 67950-68300. We suggest buying silver above Rs 67500 with a stop loss of Rs 67100 for target of Rs 68300.

NS Ramaswamy, Head of Commodities, Ventura Securities

Gold on February 7 was trading on a flat note, with Comex Gold trading between $1876.17-1864.20 and MCX Gold trading between Rs 57380-56951. The dollar index hit a one-month peak before retreating below and settling near 103.24. Federal Reserve Chair Jerome Powell in yesterday's address said the battle against inflation will be a prolonged one and interest rates may need to move higher than expected. Minneapolis Fed President Neel Kashkari said the Fed would probably have to raise interest rates to at least 5.4% in order to tame high inflation. The US trade gap widened to a record in 2022 as imports rebounded and exports of goods dropped to a 10-month low, government data said Tuesday.

On MCX, immediate resistance for gold is at Rs 57800 and immediate support is near Rs 56700. On Comex immediate resistance is near $1900 and immediate support is near $1854 levels.

With agency inputs

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