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Gold Prices Today: Yellow metal to stay volatile, support at Rs 55,640-55,450

Gold has support at Rs 55,640-55,450, while resistance is at Rs 56,080, 56,450. Silver has support at Rs 69,050-68,580 and resistance at Rs 69,920–70,580, says Rahul Kalantri of Mehta Equities

January 09, 2023 / 10:25 AM IST
Gold, Gold prices, Precious Metals

Gold, Gold prices, Precious Metals

Gold edged higher on January 9 morning in India as prices hovered near a seven-month high in the international market, supported by a weaker dollar and hopes that the US Federal Reserve may slow its pace of interest rate hike.

At 10.06 am, gold was trading 0.59 percent higher on the Multi Commodity Exchange (MCX) at Rs 56,070 for 10 grams. Silver was up 0.74 percent at Rs 69,669 a kilogram.

Spot gold was up 0.2 percent at $1,868.89 per ounce at 0016 GMT. US gold futures also inched 0.2 percent higher at $1,873.80.

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Rahul Kalantri, VP-Commodities, Mehta Equities

Gold and silver prices posted strong gains on January 6 evening after profit-taking in the dollar index and US 10-year bond yields. The disappointing US macro data for November pushed gold back to a six-month high after the economy and employment showed signs of cooling.

We expect gold and silver to remain volatile on January 9 and hold their support levels. Gold has support at $1,858-1,845 and resistance at $1,885-1,898. Silver has support at $23.72-23.55, while resistance is at $24.30-24.48.

In rupee terms, gold has support at Rs 55,640-55,450, while resistance is at Rs 56,080, 56,450. Silver has support at Rs 69,050-68,580 and resistance at Rs 69,920–70,580.

Ravindra V Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities

On January 6, Comex gold saw a dramatic turnaround and hit a seven-month high of $1,875.2. The dollar reversed gains made earlier in the session and slipped to 103.6 as wage growth fell to 0.3 percent MoM, less than the expected 0.4 percent, leading to bets that slowing wage growth may prompt the Fed to moderate its policy stance. Markets largely ignored job additions and a drop in the unemployment rate.

The US economy added 223,000 jobs in December, beating expectations of 200,000, while the jobless rate slipped to 3.5 percent. The ISM Services PMI fell to 49.6 in December, slipping into contraction for the first time since May 2020, and sharply lower from November's reading of 56.5. This highlighted the impact of higher interest rates on economic activity.

In the morning, Comex gold was trading near $1,884, supported by extended losses in the dollar but Fed Chair Jerome Powell's speech and US CPI figures may influence prices later in the week.

Deveya Gaglani, Research Analyst, Axis Securities

Gold rallied by more than a percent in the week gone by and settled at around Rs 55,735 near the multi-month high. Prices gave a weekly close above the Rs 55,000 level for the first time in two years, which is a bullish sign.

Comex gold touched an eight-month high of around $1,880 an ounce on January 9 morning due to a weakness in the dollar index as a slowdown in wage growth and service activity in the US toned down the expectation of an aggressive rate hike by the Fed.

Minutes of the Fed’s December meeting indicated that policymakers are committed to hiking rates and holding them at a restrictive level until there were clear signs that inflation is easing. In Comex, resistance is placed around $1,900 and support at $1,830.

(With agency inputs)

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Sandip Das
first published: Jan 9, 2023 10:25 am