Gold and silver exhibited significant volatility, initially increasing early in the trading session following the results of the FOMC meeting, only to give up those gains later.
The release of jobless claims in the United States, meeting market expectations at 2,08,000, tempered the bullish momentum in precious metals. Additionally, easing tensions in the Middle East have diminished demand for safe haven assets, contributing to a decline in gold and silver prices from their record highs. Nonetheless, profit-taking on the dollar index and US bond yields provided some support for the price decline. The US Fed’s indication of no imminent rate hikes further strengthened prices, supporting precious metals.
On US markets, spot gold held steady at $2,301.49 per ounce at 02:15 GMT and lost more than 1% this week. Prices fell $130 after hitting an all-time high of $2,431.29 earlier in April.
U.S. gold futures edged up 0.1% to $2,311.20. The Fed said Wednesday it was still leaning toward possible reductions in borrowing costs, but warned that recent disappointing inflation numbers could make those rate cuts a while away. Markets are pricing in a 73% chance of a rate cut in November, according to CME’s FedWatch tool. Bullion is known as a hedge against inflation, but high interest rates reduce the appeal of this non-yielding asset. Today, the US dollar index, DXY , was hovering near the 105.24 mark, up 0.06 or 0.06%.
Support and Resistance Levels for Bullion by Rahul Kalantri, VP Commodities, Mehta Equities:
- Gold sees support at Rs 70,520 and Rs 70,350, with resistance at Rs 70,980 and Rs 71,120, respectively.
- Silver support is positioned between Rs 80,840 and Rs 80,380, with marked resistance at Rs 81,940 and Rs 82,580.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
