Gold Silver Reports — Technically Gold market is getting support at 28280 and below same could see a test of 28058 levels, and resistance is now likely to be seen at 28688, a move above could see prices testing 28810.
Gold on MCX settled up 0.14% at 28608 recovered from the day’s low while Comex Gold prices were slightly lower down by $3.30 to settle at $1,245.80/oz extending this week’s run of directionless trading amid mixed signals on US. An important feature in the marketplace this week has been rising world government bond yields.
Earlier this week central bank officials, many of whom were speaking at a conference in Portugal, sounded a more hawkish tone on their monetary policies. It appears the central bankers of the world are now embracing the US Federal Reserve’s notion that the time has come to start raising interest rates and winding down the extraordinary quantitative easing programs that have been in place for nearly 10 years.
The “easy money” from the central bankers the past several years has been a bullish underlying factor for the precious metals markets. With the QE programs from the central banks now ready to wind down further, it’s a bearish element for the metals.
Yesterday’s encouraging economic news prompted speculation the Federal Reserve will again raise interest rates in the coming months, but remarks from a top central banker made the case for keeping rates on hold.
While US gross domestic product expanded at a 1.4% annual pace in the first quarter, revised figures show. That’s an improvement from the prior 1.2% reading and doubles the initial 0.7% estimate. Still, St. Louis Fed President James Bullard said the current level of interest rates is appropriate for the low-inflation environment. — Neal Bhai Reports