MCX Gold Silver Update: Prices of gold and silver recovered, as pressure from the dollar appeared to have eased, creating the demand for safe haven Gold which moves slightly higher. The DX retreated slightly after scaling a new 20-year high on Monday near to 115 levels.
- Gold gains positive traction on Tuesday and snaps a two-day losing streak to over a two-year low.
- The USD eases a bit from a two-decade high and offers support to the dollar-denominated metal.
- Bets for more aggressive rate hikes by the Fed and other major central banks could limit the upside.
A selloff in most other asset classes and rising interest rates globally boosted the greenback’s safe haven demand, helping the currency largely overtake gold as a preferred safe haven buy this year. In Comex, gold has support at $1620, while resistance is at $1652. Silver has support at $18.20, while resistance is at $19.20. In rupee terms at MCX gold has support at Rs 48750, while resistance is at Rs 49750. MCX Silver has support at Rs 53700, while resistance is at Rs 56800.
Spot Gold Update:
From a technical perspective, any subsequent move up is more likely to confront resistance near a one-week-old trading range support breakpoint, around the $1652 region. Sustained strength might trigger a short-covering move towards the $1,680 supply zone. Some follow-through buying will negate any near-term negative bias and pave the way for additional gains, allowing bulls to aim back to reclaim the $1700 round-figure mark.
On the flip side, the YTD low, around the $1,620 area, now seems to protect the immediate downside ahead of the $1,620 region. Failure to defend the said levels will be seen as a fresh trigger for bearish traders and drag gold towards the next relevant support near the $1,580 zone. The downward trajectory could extend towards the $1,530 region, below which the Yellow Metal might turn vulnerable to challenge the $1,500 psychological mark.
