Gold price today (February 5): Short-term outlook, Forecast and Updates
Gold price rises to Rs 49,000 per 10 gm, silver trending at Rs 69,000 a kg
Gold price on Thursday inched up to Rs 49,000 from Rs 48,590, while silver price fell by Rs 2,000 to trend at Rs 69,000 per kg, according to the Good Returns website.
Gold jewellery prices vary across India, the second-largest consumer of the metal, due to differing excise duty, state taxes, and making changes in different states.
In New Delhi, the price of 22-carat gold fell by Rs 440 to Rs 46,900 per 10 gm, while in Chennai it declined to Rs 45,290. In Mumbai, the rate jumped to Rs 48,000, according to the Good Returns website. The price of 24-carat gold in Chennai was Rs 49,400 per 10 gm.
In the international market, Silver rose on Wednesday, helped by hopes that global stimulus measures would prompt a pick-up in industrial demand, after a sharp decline from a near-eight-year peak scaled with the help of a social media-inspired buying frenzy.
Spot silver rose 0.6 per cent to $26.76 per ounce at 1:49 p.m. EST (1849 GMT). It fell more than 8 per cent on Tuesday.
The recent moves have attracted a lot of new interest in silver, “not necessarily Reddit investors, but just people out there looking at silver as an undervalued asset,” said Bob Haberkorn, senior market strategist at RJO Futures.
“There is an increased physical demand for silver at this point.”
Prices surged to $30.03 on Monday after retail investors attempted to replicate a GameStop style rally.
The buying spree left silver dealers scrambling to find supplies of coins and bars.
Spot gold fell 0.2 per cent to $1,833.93 per ounce. US gold futures settled up 0.1 per cent at $1,835.10.
A steepening US Treasury yield curve and a jump in equities are pressuring gold, said Daniel Ghali, commodity strategist at TD Securities.
Gold Price Analysis: XAU/USD eyes critical $1803 support amid firmer yields – Confluence Detector
Gold (XAU/USD) extends the three-day losing streak this Thursday, closing in on the $1800 level, as rising Treasury yields amid strengthening US economic recovery weigh negatively on the non-yielding gold. Further, uncertainty over the size of the US fiscal stimulus package keeps the gold traders unnerved, Fxstreet reported.
Gold also tracks the decline in Silver, as the retail-buying frenzy in the white metal fizzles out. Focus remains on the US jobs data and sentiment on Wall Street for fresh trading impetus.
Gold Price Chart: Key resistances and supports
The Technical Confluences Indicator shows that gold is flirting with the $1820 support, which is the pivot point one-day S2.
Minor support awaits at $1815, the Bollinger Band one-day Lower. A failure to resist above the latter, gold prices could fall further to test the pivot point one-day daily S3 at $1812.
The sellers target the previous month low at $1803. However, the pivot point one-week S2 at $1807 could offer some temporary reprieve to the XAU bulls.
On the flip side, recapturing the pivot point one-week S1 hurdle at $1824 could expose the $1828 barrier, which is the confluence of the previous high one-hour and pivot point one-day S1.
The previous powerful support now resistance at $1831 could be tested, where the previous week low coincides.
Further up, the bulls could challenge the Fibonacci 38.2% one-day at $1837 en route $1840. That level is the convergence of the Fibonacci 61.8% one-day and Fibonacci 23.6% one-month.
Price of Gold Fundamental Daily Forecast – Supported by Stable Silver Prices but Capped by Rising Yields
Gold prices were steady on Wednesday as sliver prices stabilized after a fall of more than 8% in the previous session, said Fxempire.
Gold futures are edging higher on Wednesday, essentially mirroring the movement in the silver market. Helping to cap gains are a stronger U.S. Dollar and firm demand for riskier assets. Rising Treasury yields are also limiting demand for gold.
Traders are also monitoring the developments in Washington as there is growing optimism that Congress will approve President Joe Biden’s entire $1.9 trillion coronavirus relief package despite Republican opposition.
Silver Prices Stabilize
Gold prices were steady on Wednesday as sliver prices stabilized after a fall of more than 8% in the previous session brought a social media inspired buying spree that began last week to an abrupt halt.
The trigger for Tuesday’s reversal was a hike in margins by the CME Group. Meanwhile, the buying spree left sliver dealers scrambling to find supplies for retail buyers, while one billion ounces of silver was traded in London on Monday.
Holdings in iShares Silver Trust, the largest silver-backed ETF, jumped by a record 57.8 million ounces, data showed on Tuesday.
Euro Hits Two-Month Low against Dollar
Helping to put a lid on gold prices is the stronger U.S. Dollar Index. The dollar index is moving higher on Wednesday, boosted by a drop in the heavily weighted Euro. The single-currency fell to a two-month low against the greenback, trading just above $1.20, as investors looked to a widening disparity between the strength of the U.S. and European pandemic recoveries.
The view was bolstered by moves in Washington toward fast-tracking more stimulus spending, in contrast with concerns about extended European lockdowns and expectations for a decline in Euro Zone growth this quarter.
Treasury Yields Rise as Democrats Push Forward with Stimulus
The 10-year U.S. Treasury yield held above the 1.1% mark early on Wednesday, as Democrats pushed forward with trying to pass President Joe Biden’s $1.9 trillion stimulus plan.
U.S. government bond yields advanced on Wednesday, after Democrats took their first votes in Congress on Tuesday night, to pass the proposed stimulus package without Republican support.
Higher-yields tend to be a negative for gold because the precious metals doesn’t pay interest.
There doesn’t seem to be a lot of positives for gold at this time, which may be a set up for a sneaky rally. Meanwhile, some are saying that gold could be a big winner if the turmoil continues in silver especially if the CME continues to keep silver margins high.
That’s it for the potential positives. As for the negative, it looks as if another uptrend is developing in Treasury yields. If the Biden stimulus package becomes law then the government will have to pay for it by selling bonds. Yields will have to go up to attract investors into U.S. Treasurys.
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