Gold Prices Today: Yellow metal a tad higher as focus turns to upcoming Fed meeting

Gold prices had declined on April 17 as data showed that manufacturing activity in New York increased after five months. This boosted the dollar and yields on US Treasury bills also rose, dampening demand for precious metals such as gold and silver.

Gold prices in domestic and international markets edged slightly higher as investors continue to look for cues about whether the US Federal Reserve will continue raising interest rates at their upcoming meeting in May.

At 10.45am, the price of gold on COMEX was around $2,010.30 per ounce, up 0.2 percent from the previous close. The June contract on the Multi Commodity Exchange of India was at Rs 60,258 per 10 grams, up 0.1 percent.

Gold prices had declined on April 17 as data showed that manufacturing activity in New York increased after five months. This boosted the dollar and yields on US Treasury bills also rose, dampening demand for precious metals such as gold and silver.

“Because of the uncertainty around the US Federal Reserve's rate hike decision, investors sought clarity on whether the US Federal Reserve will stop after a widely anticipated interest rate hike in May,” said Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One.

However, recent hawkish comments from Fed officials have soured the mood in the gold market somewhat. Fed Governor Christopher Waller had recently said that that inflation is still high and interest rates need to rise further to counter it.

Gold prices are above the psychologically important mark of $2,000 per ounce on COMEX and Rs 60,000 per 10 grams on the Multi Commodity Exchange of India. Experts believe prices are likely to consolidate above these levels for the time-being.

“Gold’s path towards record territory is still there, it just might take a little while longer,” said Ed Moya, senior market analyst at OANDA, Americas. “There is too much earnings, political, geopolitical, and central bank risk on the table. Only a couple of risks need to rattle markets to trigger safe-haven towards gold,” he said.

According to Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited, the support for MCX gold is at Rs 60,000 per 10 grams and resistance at Rs 60,600 per 10 grams.

For silver, prices are likely to trade in a range of Rs 74,300-Rs 75,900 per kilograms.

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