Gold and silver prices edged higher in today’s session, with the price of gold rallying at $1140.30, up 0.59%, or $6.50 per troy ounce during the course of Tuesday’s session.
Silver also stood higher today, which gained 1.56%, or 0.256 per ounce.
The settlement likely rested near a two-week high on government inflation data from Japan, marking a moderate trade with market players in the U.S. returning to work after the long Christmas holiday break. Meanwhile, markets in London were closed.
Subsequently, analysts have figured the heightened concern over the European bank solvency, along with the broadening uncertainties surrounding President-elect Donald Trump’s economic appeals would drive gold prices higher in 2017.
In today’s news, Trump named Tom Bossert as a new national security advisor for domestic terrorism, who had been the former deputy assistant for homeland security to President George W. Bush. Apparently, there is no economic policy news made.
However, gold prices could decline over a short-term period if the U.S. bond yields will continue to rally, according to experts.
]Evidently, the ten-year U.S. Treasury notes traded higher amid Tuesday’s session, with a 2.563% yield, up by about 0.024%.
Gold and silver were changing hands over 0.50 percent higher during the course of Wednesday’s session on the Multi Commodity Exchange (MCX) amid a massive buying from retailers, jewelers and industries.
During the earlier session, the yellow metal was seen changing hands at about 0.52 percent, or Rs 142, higher at Rs 27,312 per 10 gm. On the other hand, the white metal climbed to 0.84 percent, or Rs 328, which stood at Rs 39,446 per 1 kg.
In essence, gold prices are expected to retreat in Wednesday’s session, according to Nirmal Bank Commodities.
NCDEX data reported gold Ahmedabad’s spot prices, which settled at Rs 27,514 per 10 gm on Tuesday, while silver Ahmedabad changed hands at Rs 39,260 kg.
Hence, Angel Commodities Broking noted, “A stronger dollar and low physical demand are some of the factors that will cap the upside of gold in the near term.”
Gold Rejects Soaring Prices
The yellow metal remained flat to its broader downside bias, followed by a disappointing momentum at the close of Tuesday’s session. On the downside, support hit 1,130.00 level where it has attempted to break through 1,120.00 level.
Consequently, resistance stood at 1,150.00 level where a break is expected at the 1,160.00 level.
As oil prices is likely in a bullish tone, market participants are recommended to still wait on the sidelines as there aren’t any supporting data as of writing.
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