Gold Prices Today: Yellow metal prices to correct further from current level amid economic concerns, hawkish Fed

Gold, Gold prices

Gold was flat and hovered near a two-month low on Monday in the international markets, after strong US economic data stoked fears that the Federal Reserve would implement more interest rate hikes to rein in inflation.

Spot gold was unchanged at $1,810.48 per ounce, as of 0317 GMT. US gold futures was flat at $1,817.40.

At 10.50 am, gold was down 0.16 percent on the Multi Commodity Exchange (MCX) at Rs 55,343 for 10 grams, while silver was trading lower by 1 percent at Rs 62,800 per kilogram.

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Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities

Gold prices traded flat to positive on Monday. Spot Gold prices at Comex were trading marginally higher by 0.03% at $1,812 per ounce in morning trade. Gold prices fell to a two-month low last week as strong US macro data raised worries that the Federal Reserve could hike interest rates aggressively, further. Dollar index hovered near a seven-week high on Monday, stronger dollar-capped upside in Yellow metals.

We expect gold prices to correct further from the current level and any pullback in price will be used as a selling opportunity. Comex spot gold has supports at $1805-1791 per ounce and resistance at $1831 per ounce for the day. MCX Gold April future has support at Rs 55,080 per 10 gram and resistance at Rs 56 040 per 10 gram.

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

Gold prices fell more than 1% in the most recent week, indicating that the yellow metal will remain weak for yet another week. The Federal Reserve is likely to maintain higher interest rates for a longer period of time, according to minutes from its most recent policy meeting, which put pressure on the price of the yellow metal. Further, the dollar index climbed towards 7-week highs, further dragging gold prices to lower levels. The market anticipates that the US central bank will maintain annual interest rates above 5%.

A surprise uptick in US economic activity in February saw it reach its highest level in eight months, according to a survey that also showed a decline in inflation. We expect gold to trade lower towards Rs 55,170 levels, a break of which could prompt the price to move lower to Rs 54,980 levels.

Rahul Kalantri, VP Commodities, Mehta Equities

Gold and silver extended their fall last week with the yellow metal prices slipping to nearly two-month lows and silver falling to 3.5-month lows in the international markets. Gold and silver extended their fall after strong gains in the dollar index, which surged to two-month highs and crossed the 105 mark.

The US 10-year bond yields also crossed 3.90% levels amid further aggressive interest rate hike expectations from the US Fed. The US Fed officials advocate for further 50 basis point rate hikes amid hotter-than-expected US inflation and strong economic data. The US PCE price index shows growth of 0.6% in January against a growth of 0.4% in December month.

We expect gold and silver to remain volatile in today’s session. Gold has support at $1798-1788 while resistance is at $1820-1832. Silver has support at $20.62-20.48, while resistance is at $21.10-21.22. In rupee terms, gold has support at Rs 55,170-54,940, while resistance is at Rs 55,660- 55,850. Silver has support at Rs 62,950-62,420, while resistance is at Rs 63,890–64,480.

NS Ramaswamy, Head of Commodities, Ventura Securities

COMEX gold is trading in a narrow range near $1,820 amid concerns over high US inflation and a hawkish response from the Federal Reserve. The rising in the dollar index and US 10-year Treasury yields also added pressure on the yellow metal. COMEX Gold has support near $1,815 and resistance near $1,830.

With agency inputs

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