Gold and silver prices today: Yellow metal holds steady ahead of US inflation data

Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 58,661 per 10 grams and hit an intraday low of Rs 58,611. In the international market, prices hovered around $1,926 per troy ounce. Meanwhile, silver opened at Rs 71,464 per kg and hit an intraday low of Rs 71,411 on the MCX. The price hovered around $23 per troy ounce in the international market.

Anuj Gupta, Vice President of IIFL Securities, said, "Yesterday, gold prices corrected by 0.22% and closed at 58661 levels. We observed a sideways to downtrend in gold due to the expected hike in interest rates by the FOMC in the upcoming meeting. However, the dollar index, which is at a 9 week-low of 101.87, supports the yellow metal."

He sees technically strong support at 58,400 levels and then at 58,200 levels, and resistance at 58,900 and then 59,300 levels. "Today, one can buy on dips around 58400-58500 levels with a stop-loss of 59200 and for the target of 59000 to 59200 levels. Gold may test $1940 to $1945 levels in international markets."

Gold prices traded steady in early morning trade as market participants were cautious ahead of the release of US inflation data that could influence the Federal Reserve's rate trajectory. Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "A slew of Fed members are also set to speak this week, including Neel Kashkari and Loretta Mester. Central bank members have so far echoed Fed Chair Jerome Powell's stance that more rate hikes are still needed to bring down sticky inflation. Investors see a 94% chance that the central bank would raise rates into the 5.25-5.5% range in its July meeting, as per CME's Fedwatch tool. Weaker than expected PMI and jobs data from the U.S. weighed on the dollar last week, supporting an up-move in safe-haven assets. Along with fed officials' comments, focus this week will also be on the US CPI data due tomorrow. While overall inflation is expected to have eased, core CPI inflation is still expected to remain high."

Amit Khare, Associate Vice President (Research) at Ganganagar Commodity Limited (GCL), said, "MCX Gold and Silver had mixed closing yesterday. August gold closed at 58689(-0.18%) and September silver closed at 71365(0.08%), bullion charts are trading in oversold zone, good short covering is possible in near term,  momentum indicator RSI is also indicating the same. So, traders are advised to create fresh buy positions in gold and silver near given support level one with the stop loss of support level two and book near given resistance levels: Gold August Support 58500/58300 and Resistance 59000/59200. Silver September Support 70600/69900 and Resistance 71600/72000."