While investors awaited a speech by Federal Reserve Chairman Jerome Powell to determine the direction the US central bank will take with its monetary policy, gold prices rose on February 7 in international markets, driven by for a small drop in the dollar.
Spot gold was up 0.2 percent at $1,870.63 an ounce after falling to its lowest since Jan. 6 in the previous session. US gold futures rose 0.2% to $1,882.50. As of 10:07 a.m., gold was up 0.2 percent at Rs 57,068 per 10 grams on the Multi Commodity Exchange (MCX), while silver was up 0.17 percent at Rs 67,511 per kilogram.
Gold rose a bit yesterday after falling sharply from its nine-month high on stronger than expected US payroll statistics. Anxiety about a recession eased as US economic indicators improved. Investors, however, are awaiting additional information on the outlook for monetary policy in Fed Chairman Jerome Powell’s speech due later in the day.
Anticipating the aggressive tone of Powell’s speech, the US dollar index has risen, which could continue to weigh on bullion prices. Rs 56,500 serves as a support for gold and Rs 57,400 serves as a barrier. Support and resistance levels for silver are set around Rs. 66700.
US-China tensions and strong US labor market data
On Monday, gold prices were somewhat higher, while silver prices were slightly lower. After surprisingly positive US jobs data on Friday rattled precious metals markets, gold hit a four-week low overnight and silver a two-month low.
US-China tensions and strong US labor market data, which have breathed new life into the Fed’s tightening spell, were the main drivers of market jitters on Monday. As the dollar rose 0.71% and the dollar index settled at 103.485, bullion prices also declined. Precious metals traders will be watching for Jerome Powell’s speech as scheduled.
In today’s session, we anticipate continued volatility for gold and silver. The support and resistance levels for gold are $1851-1840 and $1884-1892, respectively. For silver it is between $22.08 and 21.95; resistance is between $22.62 and 22.85. For gold in rupees it is between 56,520 and 56,360 rupees, while the resistance is between 57,270 and 57,450 rupees. Support and resistance levels for silver are Rs 67,050-66,520 and Rs 67,850-68,380, respectively.
The price of gold on Wednesday was unchanged, fluctuating between $1,872.60 and 1,862.30 on the Comex and between Rs. 57195 and 56638 on the MCX. Yesterday the dollar index made a comeback and peaked at 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 strength of the US labor market, US Treasury Secretary Janet Yellen said yesterday that she saw a route to avoiding a US recession, with a significant drop in inflation and a strong economy.
For information on the Federal Reserve’s upcoming monetary actions, traders will follow Federal Reserve Chairman Jerome Powell’s speech later today. On the MCX, gold’s immediate resistance is at Rs 58,100 and its immediate support is at or near Rs 56,150. On Comex, the $1920 level is the first resistance point, while the $1835 level is the first support point.
!function (f, b, e, v, n, t, s) {
if (f.fbq) return;
n = f.fbq = function () {
n.callMethod ?
n.callMethod.apply(n, arguments) : n.queue.push(arguments)
};
if (!f._fbq) f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = ();
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)(0);
s.parentNode.insertBefore(t, s)
}(window, document, ‘script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘504526293689977’);
fbq(‘track’, ‘PageView’);
