Gold Prices Today: Yellow metal to remain range-bound, may find support at Rs 55,400

Gold, gold prices

Gold prices edged higher on Friday in the international markets and were on track for a fourth weekly gain, supported by a weaker dollar and hopes of slower interest rate hikes by the US Federal Reserve.

At 9:35am, gold was trading 0.12 percent higher on the Multi Commodity Exchange (MCX) at Rs 55,940 for 10 grams. Silver shed 0.03 percent at Rs 68,623 a kilogram.

Spot gold was up 0.1 percent at $1,897.92 per ounce, as of 0045 GMT. Prices gained 1.7 percent so far this week.

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Nirpendra Yadav, Senior Research Analyst at Swastika Investmart

Precious metals prices remained firm yesterday on the hope of slower rate hike as US CPI YoY stood 6.5 percent versus 7.1 percent in December. US dollar, which move opposite to gold prices, slipped below 102.5 level supporting the precious metals prices. Technically, day trend in precious metals may remain range bound. Gold has resistance at Rs 56200 and support at Rs 55400. Silver has resistance at Rs 69800 and support at Rs 67500.

Rahul Kalantri, VP Commodities, Mehta Equities

Bullion prices rose sharply on Thursday, with gold notching a seven month intra-day high of $1,906.50. Gold prices are set for a fourth straight week of gains after the US inflation report came in line with market expectations, but still considered to be on the higher side.

The highly anticipated US consumer price index report for December came in at up 6.5% year-on-year, which was right in line with the consensus forecast. But whether or not the metal can maintain the upward momentum depends on the rate hike decision by the Federal Reserve in its February meeting.

We expect gold and silver prices to remain volatile in today’s session. Gold has support at $1882-1868 while resistance is at $1908-1915. Silver has support at $23.52-23.35, while resistance is at $23.95-24.15. In rupee terms, gold has support at Rs 55,540-55,380, while resistance is at Rs 56,120, 56,350. Silver has support at Rs 68,050-67,520, while resistance is at Rs 69,320–69,680.

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

Yellow metal prices surged on Thursday, as it crossed the $1900 mark, however, couldn't settle above the same. Bullion gained over 1 percent and settled at 1896.9$ per ounce. With this increase in price, gold was on course to post a fourth weekly gain, helped by a weaker dollar and forecasts of a more gradual US Federal Reserve interest rate increase.

The dollar index was projected to lose more than 1% of its value this week. Foreign buyers find bullion more appealing due to a declining value of the dollar. For the first time in more than 2-1/2 years, US consumer prices decreased in December, raising hopes that inflation was finally on a sustainable downward trend.

We expect gold to trade lower towards Rs 55610 levels, a break of which could prompt the price to move lower to Rs 55420 levels.

(With agency inputs)

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