Gold prices will remain range-bound despite volatility
As the likelihood of additional interest rate hikes from the US Federal Reserve continues to weigh on the attractiveness of the zero-yielding commodity, gold prices fell on Tuesday in the international markets and are on track for a monthly decline of roughly 6%.
After a two-month low on Monday, spot gold was down 0.1% at $1,816.33 per ounce. US gold futures were unchanged at $1,824.70, while silver was trading lower by 0.06% at Rs 62,925 per kilogram. Gold was down 0.17% at Rs 55,380 for 10 grams on the Multi Commodities Exchange (MCX).
The prices started the new week higher after ending the previous week down, rising roughly 0.5% to end at $1817.3 per ounce. Despite this increase, the prospect of future interest rate increases by the US Federal Reserve reduced demand for assets with no income, driving the price down 6% in the month.
Since the dollar index is down from its seven-week high, buyers holding other currencies can purchase bullion at a lower price. We anticipate that the gold price will trade lower toward Rs 55,250 levels; a breach of these levels could push prices to Rs 55,080.
After mixed movements in a choppy session on February 27, silver prices fell to a level close to a four-month low on February 28. Profit–taking on the dollar index at higher levels underpinned gold prices.
Support and resistance levels for gold are $1,804 and $1,792, respectively. In terms of rupees, the support and resistance levels for gold are Rs 55,240 and Rs 54,980. Support and resistance levels for silver were Rs 62,450–62,020 and Rs 63,590-64,180 respectively.
The price of gold increased on February 28
In the morning trade, Comex spot gold prices were trading up 0.11% at $1,819 per ounce. The dollar index declined from a seven-week high and traded flat on Tuesday. On the macroeconomic front, new orders for US-manufactured capital goods rose in January by the most in five months.
In today’s session, we anticipate a consolidation of gold prices between $1,807 and $1,833 per ounce. Support for the day for Comex spot gold is between $1,805 and 1,793 per ounce. Support and resistance levels for the MCX April futures are Rs 55,180 and Rs 55,780 per 10 gram, respectively.
On worries about rising interest rates and in anticipation of important US economic readings this week. COMEX gold is trading in a constrained range in early trade. The dollar index is currently trading under the 105 mark. The US Purchasing Managers Index (PMI) readings for February. And Chinese PMI data due on March 1 will now be the main topics of interest for market participants. Support for COMEX gold is located close to $1,816; resistance is found at $1,831.
