Gold Price Today Rises but Rs 8,300 Down from Record High. Will Gold Rate Hike Soon?

Gold price in India edged higher on Monday. On the Multi-Commodity Exchange (MCX), the gold futures rose 0.09 per cent to Rs 47,823 for 10 grams at 0920 hours on January 17. Silver price also gained on Monday. The precious metal future jumped 0.16 per cent to Rs 61,701 for a kilogram on January 17.

In the international market, however, gold prices eased on Monday. Spot gold was down 0.2 per cent to $1,814.08 per ounce by 0024 GMT. US gold futures dropped 0.1 per cent to $1,815.00, according to Reuters. The slump in yellow metal can be attributed to a jump in US 10-year Treasury yields in the previous week. The yields gained on the hawkish signals from the Federal Reserve. US Federal Reserve chairman Jerome Powell said last week that the US economy is ready to start of tighter monetary policy. Fed is all set to start raising interest rates by March, sooner-than-anticipated timeline.

For gold investors, it must be noted that gold is highly sensitive to high US interest rates. US Fed rate hike will increase the opportunity cost of holding non-yielding bullion.

“India’s gold imports,  have more than doubled to $38 billion during April-December this fiscal on account of higher demand, according to data of the commerce ministry. Gold prices may continue to trend upside in near terms. Buy Zone Above – Rs 48,000 for the target of Rs 48,500. Sell Zone Below – Rs 47,600 for the target of Rs 47,400,” Dr Ravi Singh, vice president and head of research, ShareIndia.

“Gold and silver prices are showing some weakness on daily chart. So their is a probability of some profit booking at higher levels, Momentum indicator RSI also indicating the same in hourly as well as daily chart. So traders are advised to book profit in buy side and can also create fresh sell positions near given resistance levels, traders should focus important technical levels given below for the day: February gold closing price Rs 47,778, Support 1 – Rs 47,650, Support 2 – Rs 47,500, Resistance 1 – Rs 47,900, Resistance 2 – Rs 48,100. March silver closing price Rs 61,603, Support 1 – Rs 61,100, Support 2 – Rs 60500, Resistance 1 – Rs 62,260, Resistance 2 – Rs 62,600,” said Amit Khare, AVP – research commodities, Ganganagar Commodity Limited.

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