Gold went up slightly, bullish momentum to continue

CHENNAI: Gold prices went up slightly on Wednesday, with spot prices at Comex up by 0.05 per cent at $2,023/ounce, said an analyst.

Gold June futures contracts at MCX were trading down by 0.10 per cent at Rs 60,895 per 10 grams by noon.

According to Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities, gold prices were steady after a sharp rally in the previous session.

Comex spot gold prices surged more than 1.80 per cent at $2,025 per ounce on Tuesday at the highest level since March 2022 while domestic market gold prices in MCX crossed Rs 61,000 a fresh life time high on back of lower than estimated US Jolts job opening data, Gandhi said.

US job openings pointed to a slowdown in the labour market, fueled expectations that the Fed may not need to raise rates much further and could even pause the tightening cycle. Traders now see a 56.9 per cent probability the Fed will leave the fed funds rate steady next month.

"We expect gold prices' bullish momentum will likely to continue and Comex spot gold price should retest $2,065 per ounce level in the short term," Gandhi said.

Comex spot gold having supports at $1,995/$1,980 per ounce and resistances at $2,040/$2,065 per ounce. MCX Gold June future having support at Rs 60,300 per 10 gram and resistance at Rs 61,700 per 10 grams, Gandhi said.

The ongoing uncertainties in the global economy would continue to support gold in the international markets, said Hareesh V, Head of Commodities, Geojit Financial Services.

A weak US currency, unstable global equities, and robust physical demand from top consuming countries like China and India also assist the metal to edge higher in near future.

In the domestic market, though there are chances of a technical correction as prices are at all-time highs, the bullish trend is most likely to continue.

Hopes of seasonal buying and demand for festivals like Akshaya Tritiya which fall next month may offer firm support to prices in the immediate run, Hareesh added.