Gold prices at record high for second day today, silver above Rs 70,000

Gold prices have been on an uptrend since November as a weakening dollar and expectations of a slow interest rate hike by the US Federal Reserve have added to the luster of bullion. In global markets, spot gold was up 0.3% to a nine-month high of $1,926.07 an ounce. The dollar index slipped 0.3% today, making dollar-priced gold more attractive.

Investors will also be keeping an eye on US retail sales data due on Wednesday.

A poll on Friday showed US consumers are becoming more confident that price pressures will ease significantly over the next 12 months, with their one-year inflation expectation falling in January to the lowest level since the spring of 2021 .

Gold and silver prices rose on Friday after US Treasury Secretary Janet Yellen said the US would likely exceed its statutory debt limit on January 19, triggering renewed safe-haven demand for the precious metals. . In the domestic market, gold climbed to an all-time high and closed above 56,300 levels. Gold and silver gained momentum last week due to a decrease in inflation in the US and weakness in the dollar index. The dollar index has come down to a seven-month low. US 10-year bond yield also slipped below 3.50% amid expectations of a slower pace of US Fed rate hike,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

“We expect gold and silver to remain volatile in today’s session. Gold has found support at $1895-1882 while resistance lies at $1934-1944. Silver has taken support at $23.92-23.65, while resistance lies at $24.50-24.72. Gold has support in terms of rupee 56,050-55,780, while at the resistance level 56,510-56,650. Silver has support at Rs 68,950-68,420, while resistance is 69,920-70,680,” he said.