Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading higher on Wednesday despite mixed global cues, while the silver rate is down 0.11%.
On Multi Commodity Exchange (MCX), gold April futures were trading at Rs 57,170 per 10 grams, up Rs 215 or 0.38%. Silver March futures were trading lower by Rs 75 at Rs 67,324 per kg on MCX. Globally, the yellow metal prices ticked upwards on Wednesday as the dollar softened on comments from Fed Chair Powell’s less hawkish stance, even as last week’s U.S. jobs data showed a tightening labor market. Spot gold was up 0.1% at $1,876.14 per ounce. U.S. gold futures firmed 0.2% to $1,887.90.
Gold and Silver to remain Volatile
Gold and silver stayed defensive around $1,870 and $22.40 respectively. In the last two days the yellow metal failed to rebound from $1,860, as market sentiment remained sluggish amid mixed signals from the Federal Reserve and the geopolitical front. Adding confusion to the metal traders’ minds could be the lack of major data/events, with the bullion remaining under the bear hug as the U.S. treasury bond yields remained firm.
We expect gold and silver to remain volatile in today’s session. Gold has support at $1845 while resistance is at $1895. Silver has support at $21.88, while resistance is at $22.70. In INR terms gold has support at Rs 56,560, while resistance is at Rs 57,570. Silver has support at Rs 66,220, while resistance is at Rs 68,480.
MCX gold may move to 57,570
Gold edged higher on Tuesday as the dollar fell from one-month high. Further, demand for the safe haven increased on geopolitical tension between the US and China. The dollar index moved lower after the Fed Chair Jerome Powell reiterated that the disinflationary process has begun. He stressed that getting inflation to the Fed’s target zone of 2% would be bumpy and rates would have to remain in a restrictive territory for some time. Gold prices are likely to recover from their recent lows amid weakness in the dollar and decline in U.S. treasury yields. Furthermore, investors will mull comments from Fed policymakers and the outlook for Fed rate hike policy.
Focus on RBI on Wednesday
Gold prices steadied following somewhat mixed signals on monetary policy from the Fed. Governor Powell reiterated that the central bank may need to raise interest rates further due to strength in the labor market and elevated inflation. Minneapolis Fed President Neel Kashkari said the Fed would probably have to raise interest rates to at least 5.4% in order to tame high inflation. Dollar index and US Yields continue to trade steady after inching higher last week amidst positive jobs data. The U.S. trade deficit widened in December, reversing half of the prior month’s sharp contraction, as imports rebounded and exports of goods dropped to a 10-month low amid cooling global demand and declining crude oil prices. Focus today will be on RBI policy meeting.
6 thoughts on “Gold Price Today, 8 Feb: Gold ticks up, dollar softens; geopolitical tensions driving demand, traders eye RBI”
The Technical Confluence Detector shows that the Gold price manages to remain firmer after crossing two important support levels, suggesting further advances towards the $1,902 key hurdle comprising Pivot Point one-day R3 and Fibonacci 38.2% on one month.
Ahead of that, Fibonacci 23.6% and 38.2% on weekly formation can test the Gold buyers around $1,885 and $1,900 in that order.
It’s worth noting that the XAU/USD run-up beyond $1,902 enables the buyers to challenge the latest swing high surrounding $1,960.
On the flip side, Fibonacci 61.8% on one-day and one-month joins the previous low and SMA10 on four-hour (4H) to restrict the metal’s immediate downside near $1,870.
Following that, a convergence of the previous weekly low, Pivot Point one-day S1 and lower band of the Bollinger on one-day acts as the last defense of the Gold buyers around $1,860.