Gold Prices Today: Yellow metal to trade lower, may find support at Rs 51,700
Gold prices are trading below 100 EMA on the intraday chart which may intensify the selling pressure on precious metals. Gold has resistance at Rs 52700 and support at Rs 51700, said Nirpendra Yadav, Senior Research Analyst at Swastika Investmart.
SANDIP DAS NOVEMBER 23, 2022 / 10:07 AM IST
Representative image
Representative image
Gold prices inched up on Wednesday in the international markets buoyed by a weaker dollar, while investors awaited the minutes of the US Federal Reserve’s latest policy meeting that could offer clues on further interest rate hikes.
Spot gold was up 0.1 percent at $1,741.80 per ounce by 0044 GMT. US gold futures edged 0.2 percent higher to $1,742.70.
At 9:59 am, gold contracts were trading 0.17 percent lower on the Multi-Commodity Exchange (MCX) at Rs 52,200 for 10 grams. Silver shed 0.07 percent at Rs 60,945 a kilogram.
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After being under pressure and a series of negative returns, gold prices snapped the losing streak and concluded Tuesday’s session on a positive note. The yellow metal ended Tuesday’s session at 0.14 percent higher. The US Federal Reserve raised interest rates by 75 basis points for the fourth time earlier this month, and now investors are waiting for the minutes of the meeting to see if there will be any more rate increases.
Although gold is regarded as an inflation hedge, rising US interest rates reduce the appeal of non-yielding bullion.
We expect gold to trade lower towards Rs 51990 levels, a break of which could prompt the price to move lower to Rs 51780 levels.
Deveya Gaglani, Research Analyst, Axis Securities
Gold prices retreated from Rs 52500 level after prices failed to sustain near the day’s high in the last session. Comex gold is trading flat near $1740 on Wednesday, as the dollar index corrected on expectations that the Federal Reserve will hike interest rates at a slower pace in the near-term. Fed officials said in recent weeks that the central bank is likely to raise interest rate by 50 basis points (bps) in December. Such a structure is positive for Bullions, which was hammered by aggressive rate hikes this year.
Technically speaking, a strong support zone in Comex Gold is seen around $1730 level. Breakdown and sustained selling below it may drag prices lower towards $1710 by this week. On the other hand, breakouts above $7150 may push prices higher towards $1790 level.
Nirpendra Yadav, Senior Research Analyst at Swastika Investmart
Precious metals prices are trading range bound due to holidays in major economies on thanksgiving day. Traders may refrain from buying in bullion ahead of FOMC meeting minutes scheduled later in the day. Ease in the US dollar index and benchmark Treasury yields keep the downside limited in bullion prices.
Technically, gold prices are trading below 100 EMA on the intraday chart which may intensify the selling pressure on precious metals. Gold has resistance at Rs 52700 and support at Rs 51700. Silver has resistance at Rs 62050 and support at Rs 60000.
(With agency inputs)
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SANDIP DAS
TAGS: #Commodities #Gold
FIRST PUBLISHED: NOV 23, 2022 10:07 AM
