In India, the yellow metal in India was range-bound until Friday when import duty hike by the government led to a spike in the precious metal. In global markets, gold rates were steady at $1,809.45 per ounce. Bullion has been mostly hovering around the $1,800 support level for past few weeks. Among other precious metals, spot silver today gained 0.7% to $20.09 per ounce.
“COMEX gold trades near $1810/oz supported by lower bond yields, inflation concerns and increasing growth worries and renewed virus concerns in China. However, weighing on price is monetary tightening stance of Fed and other central bank, firmness in US dollar and continuing gold ETF outflows and possible slowdown in Indian demand due to import duty hike," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
The yellow metal is seen as a safe store of value during times of economic crises, like a recession.
"Gold fell sharply in last few days but has managed to hold near $1800/oz level which shows some buying interest. However, a sustained rise is unlikely given the focus on FOMC minutes and US non-farm payrolls data," he added.
The dollar was steady today near two-decade peaks putting a cap on yellow metal prices. A firm dollar typically keeps buyers holding other currencies away from greenback-priced gold.
Gold Technical Outlook
“Gold has support at $1796-1784, while resistance is at $1818-1827. Silver has support at $19.55-19.20, while resistance is at $20.20-21.45. In rupee terms, gold has support at ₹51,640–51,420, while resistance is at ₹52,220–52,440. Silver has support at ₹57,350-56,850, while resistance is at ₹58,380–58,710," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Gold traders will be closely looking ahead to US jobs numbers for June, to be released this Friday. ECB will also release the minutes of its June policy meeting on Thursday.
