With investors awaiting Federal Reserve Chair Jerome Powell’s speech later in the day to determine the direction the US central bank will take with its monetary policy, gold prices moved up on February 7 in the international markets, boosted by a minor decline in the dollar.
Spot gold was up 0.2 percent at $1,870.63 per ounce after falling as low as it had since January 6 the previous session. Gold futures in the US increased by 0.2% to $1,882.50. At 10:07 am, gold was up 0.2 percent to Rs 57,068 for 10 grams on the Multi Commodity Exchange (MCX), while silver was up 0.17 percent to Rs 67,511 for a kilogram.
Yesterday, gold increased somewhat after sliding dramatically from its nine-month high as a result of stronger-than-expected US payroll statistics. The anxiety over a recession decreased as US economic indicators improved. Investors, however, are waiting for additional information on the monetary policy outlook in Fed chair Jerome Powell’s address, which is due for later in the day.
In anticipation of Powell’s speech’s hawkish tone, the US dollar index has increased, which could continue to weigh bullion prices. Rs 56500 serves as support for gold and Rs 57400 serves as a barrier. Support and resistance levels for silver are both set around Rs. 66700.
US-China tensions and strong US job market data
On Monday, gold prices were somewhat higher while silver prices were little lower. Following a shockingly positive US jobs data on Friday that wrecked the precious metals markets, gold hit a four-week low overnight and silver a two-month low.
US-China tensions and strong US job market data, which have injected new life into the Fed’s policy tightening spell, were the main drivers of Monday’s market jitters. As the dollar increased by 0.71% and the dollar index settled at 103.485, bullion prices likewise declined. Traders of precious metals will be watching Jerome Powell’s speech as it is scheduled.
In today’s session, we anticipate continued volatility for gold and silver. Support and resistance levels for gold are $1851-1840 and $1884-1892, respectively. For silver lies between $22.08 and 21.95; resistance is between $22.62 and 22.85. For gold in rupees is between Rs 56,520 and Rs 56,360, while resistance is between Rs 57,270 and 57,450. Support and resistance levels for silver are Rs 67,050-66,520 and Rs 67,850-68,380, respectively.
The price of gold Wednesday was unchanged, fluctuating between $1872.60 and 1862.30 on the Comex and between Rs. 57195 and 56638 on the MCX. Yesterday, the dollar index made a comeback and reached a high of 103.64. Fed funds futures now anticipate rates above 5% in May as a result of last week’s encouraging jobs report. In light of the robustness of the US labor market, US Treasury Secretary Janet Yellen stated yesterday that she saw a route for avoiding a US recession, with inflation declining significantly and the economy continuing strong.
For information on the Federal Reserve’s next monetary actions, traders will be following Federal Reserve Chair Jerome Powell’s address later today. On the MCX, gold’s immediate resistance is at Rs 58100, and its immediate support is at or near Rs 56150. On the Comex, the $1920 level is the first point of resistance, while the $1835 level is the first point of support.