Gold Silver Tips Today: Gold price yesterday settled down by 0.52% at 46608 weighed down by a jump in U.S. Treasury yields and a rebound in the dollar.
U.S. producer prices increased more than expected in March, resulting in the largest annual gain in 9-1/2 years, fitting with expectations for higher inflation as the economy reopens.
Gold Silver Tips Today: All Target Hit
The U.S. Federal Reserve plans to keep its super-easy policy in place even as data shows the economy kicking into higher gear, with policymakers predicting that an expected increase in prices this year will fade on its own, and warning about the recent uptick in COVID-19 infections.
“Cases are moving back up here, so I would just urge that people do get vaccinated and continue socially distancing,” Fed Chair Jerome Powell, who has had his shots, said at an economic forum during virtual International Monetary Fund and World Bank meetings.
Read More: MCX Copper Target For Today: Copper 708.80 to714.40
“We don’t want to get another outbreak; even if it might have less economic damage and kill fewer people, it’ll slow down the recovery.”
Speaking at a separate event, St. Louis Federal Reserve Bank President James Bullard said the Fed should not even discuss changes in monetary policy until it is clear the pandemic is over, tying future Fed discussions tightly to the success of the vaccination effort.
The Fed has said it will keep buying $120 billion in bonds a month until it sees “substantial further progress” toward meeting the central bank’s employment and inflation goals.
Gold Price Forecast And Analysis: Spot Gold Eyes $1,780 Next Target
Gold has been on a roll – benefitting from the drop in returns on US government debt. The yieldless precious metal had been pressured amid competition from safe assets and can now shine again. Returns on the benchmark ten-year bonds dropped below the critical 1.60% and Gold topped $1,769.
How is gold positioned on the technical charts?
The Technical Confluences Detector is showing that Gold has little resistance on the way up, with the next high target being $1,780, which where the Pivot Point one-week Resistance 2 hits the price.
Initial support awaits at $1,758, which is the confluence of the Bollinger Band one-day Upper, the BB 15min-Upper, the PP one-day R3 and others.
It is followed by $1,758, which is the meeting point of the previous monthly high, the Simple Moving Average 5-15m and the PP one-week R1.
Further down, the next cushion is at $1,742, which is a juncture including the PP one-month R1, the 50-day Simple Moving Average and others.
All in all, the path of least resistance is to the upside.
“We expect gold prices to trade sideways to up for the day with COMEX gold support at $1,760 and resistance at $1,800 per ounce. MCX Gold June support lies at Rs 47,200 and resistance at Rs 47,900 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was up 0.1 per cent at $1,779.36 per ounce by 0127 GMT. US gold futures rose 0.1 per cent to $1,780.10 per ounce.
India’s physical gold demand faltered last week as strict restrictions to contain the spread of Covid-19 kept buyers away. Zimbabwe’s gold production fell 30 per cent to 3.98 tonnes in the first quarter of this year, central bank data showed.