Gold was trading flat in Indian as well as international markets on January 11 morning as traders awaited key US inflation data due the next day to gauge the Federal Reserve's rate hike stance.
At 10:30 am, gold was trading 0.02 percent higher on the Multi Commodity Exchange (MCX) at Rs 55,725 for 10 grams. Silver added 0.3 percent at Rs 68,565 a kilogram.
Spot gold was little changed at $1,876.49 a troy ounce, at 0023 GMT, while US gold futures were up 0.3 percent at $1,881.30.
Rahul Kalantri, VP Commodities, Mehta Equities
On January 10, gold traded steady, while silver prices were marginally weak on normal corrective pullbacks and consolidation after recent gains. A firm US dollar index and an uptick in the US treasury yields weighed negatively on bullion prices.
Even though US Federal Reserve chairman Jerome Powell's speech did not seem more aggressive than earlier, the market is still reading Fed officials' remarks as hawkish on US monetary policy, including a "higher for longer" interest rate scenario.
We expect gold and silver to remain volatile on January 11, a day ahead of the release of US inflation data. Gold has support at $1,858-1,845, while resistance is at $1,885-1,898. Silver has support at $23.48-23.32, while resistance is at $23.92-24.10.
In rupee terms, gold has support at Rs 55,640-55,450, while resistance is at Rs 56,120, 56,350. Silver has support at Rs 68,450-68,020 and resistance at Rs 69,520–69,980.
Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel One
The yellow metal continues to shine brighter, as it added up to its gains from the previous sessions. It ended 0.30 percent higher and concluded at $1,877.3. Investors refrained from making large bets ahead of key US inflation data due later this week.
Gold is considered an inflation hedge but is highly sensitive to rising interest rates, which increases the opportunity cost of holding the non-yielding bullion. The weakness in the dollar, which is hovering near a seven-month low, will keep prices underpinned.
(With agency inputs)Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.