Now MCX Gold is getting support at 46309 and below same could see a test of 46025 levels, and resistance is now likely to be seen at 46882, a move above could see prices testing 47171.
Gold yesterday settled down by 0.52% at 46593 weighed down by a jump in U.S. Treasury yields and a rebound in the dollar. U.S. producer prices increased more than expected in March, resulting in the largest annual gain in 9-1/2 years, fitting with expectations for higher inflation as the economy reopens.
The U.S. Federal Reserve plans to keep its super-easy policy in place even as data shows the economy kicking into higher gear, with policymakers predicting that an expected increase in prices this year will fade on its own, and warning about the recent uptick in COVID-19 infections.
"Cases are moving back up here, so I would just urge that people do get vaccinated and continue socially distancing," Fed Chair Jerome Powell, who has had his shots, said at an economic forum during virtual International Monetary Fund and World Bank meetings.
"We don't want to get another outbreak; even if it might have less economic damage and kill fewer people, it'll slow down the recovery." Speaking at a separate event, St.
Louis Federal Reserve Bank President James Bullard said the Fed should not even discuss changes in monetary policy until it is clear the pandemic is over, tying future Fed discussions tightly to the success of the vaccination effort.
The Fed has said it will keep buying $120 billion in bonds a month until it sees "substantial further progress" toward meeting the central bank's employment and inflation goals.
--Gold trading range for the day is 46025-47171.
--Gold slipped weighed down by a jump in U.S. Treasury yields and a rebound in the dollar.
--U.S. producer prices increased more than expected in March, resulting in the largest annual gain in 9-1/2 year
--The U.S. Federal Reserve plans to keep its super-easy policy in place even as data shows the economy kicking into higher gear.
Courtesy: Kedia Commodities