Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading higher on Monday despite mixed global cues, while the silver rate is up 1.21%. On Multi Commodity Exchange, gold April futures were trading at Rs 56,615 per 10 grams, up Rs 465 or 0.83%. Silver May futures were trading higher by Rs 760 at Rs 63,650 per kg on MCX.
Globally, the yellow metal prices rose on Monday to their highest in more than five weeks as the dollar weakened, while jitters over the largest U.S. bank failure since the 2008 financial crisis drove investors to the safe-haven asset, according to Reuters. Spot gold was up 0.5% at $1,877.30 per ounce, after hitting its highest since 3 February earlier in the session at $1,893.96. U.S. gold futures gained 0.8% to $1,882.10.
Gold prices to remain volatile
“The gold and silver market posted an unexpected weekly gain last week on potential contagion risks from the Silicon Valley Bank (SVB) meltdown and heavy selling in the dollar index. Gold and silver prices reached one month high and crossed their important resistance. The U.S. non-farm employment shows growth of 3,11,000 jobs in February against expected growth of 2,24,000 jobs but data is well below from the January month’s job growth of 5,17,000. The U.S. unemployment also surged to 3.6% in February month against expectations of 3.4%. The U.S. dollar index fell, and the two-year yield posted its biggest two-day decline since 2008, which is very supportive of higher gold prices. The U.S. Fed called an emergency meeting on Monday after the SVB bank saga which could keep precious metals volatile.
We expect gold and silver to remain volatile in today’s session. Gold has support at $1852-1840 while resistance is at $1871-1880. Silver has support at $20.44-20.25, while resistance is at $20.82-20.98. In INR terms gold has support at Rs 56,020-55,710, while resistance is at Rs 56,510, 56,780. Silver has support at Rs 62,420-62,010, while resistance is at Rs 63,490–63,980,” said Rahul Kalantri, VP Commodities, Mehta Equities.
Gold prices hit five-week high
“Gold prices rose to their highest in more than five weeks amidst positive US economic data, fall in dollar and jitters over the largest U.S. bank failure since the 2008 financial crisis, driving investors to the safe-haven asset. California banking regulators closed Silicon Valley Bank on Friday and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for later disposition of its assets. Also, State regulators closed New York-based Signature Bank on Sunday. U.S. officials have stepped in to stem financial fallout from the failure of tech startup-focused Silicon Valley Bank, saying that all customers would have access to their deposits starting on Monday.
“Data towards the end of last week showed the U.S. economy added jobs at a brisk clip in February, monthly wage growth slowed and the unemployment rate rose, pointing to some labour market loosening and prompting financial markets to dial back expectations that the Federal Reserve would raise interest rates by half a percentage point this month. Focus today will be inflation data on the domestic front. Broader trend on COMEX could be in the range of $1870-1895 and on domestic front prices could hover in the range of Rs 56,250-56,950,” said Manav Modi, MOFSL.