Today’s gold prices will stay under pressure as long as the Fed maintains its aggressive stance
In spite of the US Federal Reserve chair Jerome Powell’s hawkish comments, gold prices were slightly lower in India than they were elsewhere as the currency weakened. But, advances in zero-yielding metal were constrained. On the Multi Commodities Exchange (MCX), gold was down 0.19% to Rs 54,805 for 10 grams, while silver was down 0.4% to Rs 61,570 for a kilogram.
Although it had just touched a one-week low, spot gold was up 0.1% at $1,815.58 per troy ounce at 00:46 GMT. At $1,819.10, US gold futures remained steady. On March 8, Comex gold futures continued to decline and maintained close to the lowest level since the year’s beginning due to expectations of rising US interest rates.
The remarks increased the value of the dollar and caused US two-year treasury yields to trade above 5% at a 15-year high, which reduced demand for the non-yielding yellow metal.
Markets anticipate that the Fed will raise rates by 50 basis points at the FOMC meeting in March, depending on how well the March 10 labor report and next week’s CPI turn out.
According to US ADP employment data, private firms unexpectedly added 2,42,000 jobs in February, far more than the 1,19,000 positions that had been upwardly revised in January and the 2,00% market prediction. This raised hopes for tomorrow’s NFP.
Gold prices were slightly down
On March 8, gold finished almost exactly the same, holding close to one-week lows, closing at $1,813.6 per ounce. The chance cost of holding non-yielding bullion grew as higher interest rates in the US were anticipated. The dollar climbed to multi-month highs against the bulk of other major currencies as Powell suggested that interest rates will remain higher for longer than anticipated.
We anticipate that the price of gold will decline toward Rs 54,650, where a break might cause a fall to Rs 54,460.
On March 9, gold prices were slightly down. After hitting a one-week low in the previous session, gold prices stabilized in the lower range as traders awaited new cues. Investors will now be concentrating on the US jobs report for February, which is coming on March 10. European funds led a reduction in global gold ETF investment in February, while small outflows were observed in North American funds.
Silver and gold are likely to continue to fluctuate. Support and resistance for gold are located at $1,802-1,788, respectively. Support for silver lies between $19.81 and 19.65; resistance is between $22.24 and 21.40. In terms of rupees, the support and resistance levels for gold are Rs 54,580 and Rs 54,410, respectively. Support and resistance levels for silver are Rs 61,420–61,010 and Rs 62,490-62,880, respectively.
Although silver is in a very oversold region and some short covering is conceivable at lower levels, we anticipate gold to find stiff resistance at higher levels. Support and resistance levels for gold are $1,804-1,788, and $1,834-1,845. Support for silver is at $20 and resistance is between $20.44 and 20.70.