Gold Silver Reports ~ Silver MCX settled up 0.29% at 37864 despite Gold fell on Monday with demand for bullion hurt as the dollar arrested 3-weeks of declines after hawkish comments from US Fed officials renewed expectations of U.S. interest rate hikes.
The dollar rose 0.2 percent as two central bank officials, San Francisco Fed President John Williams and Atlanta Fed President Dennis Lockhart, raised the possibility of a rate hike as soon as April.
The recent rally in the prices on Wednesday after Fed policymakers revised down the number of times they expect to raise interest rates this year to two from four, but it failed to revisit the previous week’s 13-month high, and it slid as the dollar rebounded. Market indicators are signaling that investors see stronger risks of inflation, which has been almost non-existent since the credit crisis, despite scepticism from the Fed. Some market player fear that ultra-low interest rates around the world will eventually stoke inflationary pressures.
Bullion has benefited from low rates, which cut the opportunity cost of holding non-yielding assets like bullion. Investors and economists dialed back their own rate hike expectations in wake of the Fed’s surprisingly dovish outlook, with traders of interest-rate futures now seeing no rate rise before September. In the week ahead, market players will be turning their attention to Friday’s final reading on US fourth quarter gross domestic product for fresh indications on the strength of the economy.
Reports on U.S. durable goods orders and home sales will also be in focus, as investors attempt to gauge if the world’s largest economy is strong enough to withstand further rate hikes in 2016. Technically market is getting support at 37586 and below same could see a test of 37100 level, and resistance is now likely to be seen at 38038, a move above could see prices testing 38335. ~ Neal Bhai Reports