Gold prices today in India rise closer to all-time highs. Check latest rates

Analysts say that the weaker dollar is likely the main factor lifting gold after recent US data raised hopes for a slowdown in the pace of rate hikes by the Federal Reserve. Spot silver rose 0.5% to $23.94 per ounce in international markets. Elevated rates dampen interest in non-yielding gold, as they did for the majority of 2022.

“Dollar has slipped as US wage growth fell to 0.3%, less than expected 0.4%, leading to bets that slowing wage growth may prompt Fed to moderate their policy stance. Markets largely ignored job additions and drop in unemployment rate. The US economy added 223,000 jobs in December, beating expectations of 200,000 while the jobless rate slipped to 3.5%. Not only this, ISM Services PMI fell to 49.6 in December, slipping into contraction for the first time since May 2020, and sharply lower from November’s reading of 56.5,” said Ravindra V.Rao, Head Commodity Research, Kotak Securities Ltd

Traders will now assess Fed Chair Jerome Powell’s speech at a central bank conference and US consumer price index data due later this week.

“Gold has support at $1858-1845 while resistance is at $1885-1898. Silver has support at $23.72-23.55, while resistance is at $24.30-24.48. In INR terms gold has support at ₹55,640-55,450, while resistance is at ₹56,080, 56,450. Silver has support at Rs69,050-68,580, while resistance is at ₹69,920–70,580,” said Rahul Kalantri, VP Commodities, Mehta Equities.

Following the moderation in  US economic data, analysts are now expecting that the U.S. Fed could increase interest rates by 25 basis points in the February meetings as the economy is on the slower path after aggressive rate hikes in 2022.

Axis Securities has a neutral stance on gold and recommends a ‘Buy-on-Dips’ strategy.

“Over the last two months, gold prices have found support from the cool-off seen in the US bond yields. Based on the current macroeconomic development, Gold will continue to be a preferred asset class until uncertainties over the Russia-Ukraine conflict fades and will continue to attract investments as a proven hedge against other asset classes,” the brokerage said. (With Agency Inputs)