Gold prices rose in international markets as US debt limit talks are yet to bear fruit, while less hawkish comments from Federal Reserve Chairman Jerome Powell supported gold prices.
Besides this, depreciating dollar against its peer also supported gold prices as a weaker dollar makes gold more affordable for overseas buyers.
Media reports suggested that US President Joe Biden and House Republican Speaker Kevin McCarthy will meet on Monday (May 22) to resolve the debt ceiling impasse after talks end on Friday (May 19).
Meanwhile, Fed Chair Powell indicated that further hikes in interest rates may not be needed as there is still uncertainty about the impact of previous hikes with inflation looking harder to control.
The pause in rate hikes is positive news for gold as bullion becomes less attractive in a high interest rate environment.
Gold June futures closed down by 0.11 per cent on MCX. 60,313 per 10 grams at around 10:15 AM IST. Silver July futures were down 0.50 per cent on MCX 72,955 per kg at that time.
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Analysts expect some volatility in gold prices as US debt ceiling talks and macroeconomic indicators are in focus.
brokerage firm Motilal Oswal Financial Services Said that MCX gold may trade in a narrow range for the session. They can follow the trend this week with several Fed officials scheduled to speak, as well as focus on US GDP, PMI data, FOMC meeting minutes and updates regarding debt ceiling talks.
According to brokerage firm, support for gold has been placed on 60,000- 59,800 while the resistance is at the level 60,490- 60,740 level.
Rahul Kalantri, Vice President of Commodities Mehta Equities It is expected that volatility may remain in gold and silver in Monday’s session.
“Gold has taken support at $1,968-1,955, while resistance lies at $1,992-2,005. Silver has taken support at $23.55-23.42, while resistance at $24.05-24.22. In Indian rupee terms, gold has taken support. 60,110-59,880, while the resistance is at the level 60,610, 60,790. support on silver 72,620-71,950, while resistance is at the level 73,850-74,320,” Kalantri said.
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Manoj Kumar Jain Prithvifinmart Commodity Research Gold and silver prices are expected to remain volatile this week amid US debt talks and volatility in dollar index & may retain its support levels.
“Gold has taken support near $1,964-$1,950, while facing resistance at $1,992-$2,004 per troy ounce. Silver has taken support near $23.70-23.35 per troy ounce, while facing resistance at $24.40-24.84 per troy ounce,” Jain said. “
Gold is getting support on MCX 60,000-59,770 and at resistance 60,600-60,880 while silver has support At 72,750-72,100 and resistance 73,850-74,500. We recommend buying silver on dips With a stop loss of 73,000 for a target of 72,450 74,100,” Jain said.
Disclaimer: The views and recommendations in this article are those of individual analysts and brokerage firms. These do not represent the views of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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