Gold, gold prices
Gold was trading 0.3 percent up in India in the morning trade on January 16 as it held near a nine-month high in the international market, aided by expectations of slower interest rate hikes by the US Federal Reserve.
At 9.35 am, gold was trading 0.3 percent higher on the Multi Commodity Exchange (MCX) at Rs 56,495 for 10 grams after hitting a lifetime high on January 13 in intraday trade. Silver added 0.71 percent at Rs 69,918 a kilogram.
Spot gold was little changed at $1,918.60 an ounce, as of 0014 GMT. Earlier, prices had hit $1,922.25, the highest since April 2022. US gold futures were down 0.1 percent at $1,920.10.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver prices settled on a positive note in the international markets. February gold futures contract settled at $1,923.35 a troy ounce, up 1.29 percent and March silver futures contract settled at $24.415 a troy ounce, up 1.71 percent. Domestic markets also settled on a positive note.
Looking at the fundamentals and weakness in the dollar, gold and silver could maintain their bullish momentum in the upcoming sessions.
A buy-on-dips strategy is suggested for precious metals. Gold has support at $1,908-1,792, while resistance at $1,934-1,948. Silver has support at $24.10-23.84, while resistance is at $24.74-25.10.
On MCX, gold has support at Rs 56,100-55,880 and resistance at Rs 56,500-56,750. For silver, support is at Rs 68,900-68,350 for a kilogram and resistance at Rs 69,950-70,500.
We suggest buying silver above Rs 69,500 with a stop loss of Rs 68,850 for a target of Rs 70,700.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver rose on January 13 after US treasury secretary Janet Yellen said the US would likely hit its statutory debt limit on January 19, which triggered some renewed safe-haven demand for the precious metals.
In the domestic market, gold prices hit lifetime highs and closed above Rs 56,300.
Gold and silver prices extended gains last week due to cooling inflation in the US and the weakness in the dollar index.
The dollar index slipped below 102 marks to a seven- month low. The US 10-year bond yields also slipped below 3.50 percent amid expectations of a slower pace of Fed hikes.
We expect gold and silver to remain volatile on January 16. Gold has support at $1,895-1,882 and resistance at $1,934-1,944. Silver has support at $23.92-23.65, while resistance is at $24.50-24.72.
In rupee terms, gold has support at Rs 56,050-55,780, while resistance is at Rs 56,510, 56,650. Silver has support at Rs 68,950-68,420, while resistance is at Rs 69,920–70,680.
(With agency inputs)
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