Feb 2, 2024
Gold Price Today, 20 Feb: Gold softens, dollar gains; positive US economic data raises fears of rate hikes
Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading flat on Monday as a result of mixed global cues, while the silver rate is down 0.08%. On Multi Commodity Exchange, gold April futures were trading at Rs 56,213 per 10 grams, down Rs 44 or 0.08%. Silver March futures were trading lower by Rs 50 at Rs 65,581 per kg on MCX.
Globally, the yellow metal prices dropped on Monday, weighed down by a stronger dollar, after recent U.S. economic data raised worries that the Federal Reserve could hike interest rates further. Spot gold was down 0.2% at $1,837.59 per ounce. U.S. gold futures eased 0.1% to $1,847.60.
“We expect gold and silver to remain volatile in today’s session. Gold has support at $1820-1808 while resistance is at $1848-1855. Silver has support at $21.32-21.10, while resistance is at $21.62-21.78. In INR terms gold has support at Rs 55,980-55,810, while resistance is at Rs 56,520, 56,700. Silver has support at Rs 64,850-64,320, while resistance is at Rs 66,150–66,580,” said Rahul Kalantri, Mehta Equities.
Gold prices recovered some losses on Friday
“Gold prices recovered some of their losses towards the end of the session on Friday as the dollar edged lower ahead of a long weekend. Earlier in the day gold and silver fell to their lowest level in a month amid resurgent fears of steeper rate hikes ahead. Further, hawkish comments from Fed member Michelle Bowman to bring back inflation to the target zone of 2% weighed over prices.
“Gold is likely to trade with a negative bias amid expectation of a rise in interest rates and a strong dollar. Gold prices have breached the key 20 day EMA support and the lower band of the upward sloping trend channel, suggesting weakness in the trend. Hence, as long as prices trade below 56,500 they are expected to slide towards 55,700-55,600. MCX silver hit the key support and 38.2% Fibonacci retracement level of the bull rally at 64,780. Prices have to move below 64,780 to extend their decline further towards 64,200. On the upside, 50 day EMA at 66,900 would act as key resistance to the price,” said an ICICIdirect report.
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