Gold prices inched higher on Monday, staying above the key $1,800 per-ounce level, as slightly weaker U.S. Treasury yields offset an uptick in the dollar.
Spot gold rose 0.2% to $1,811.31 per ounce by 0145 GMT. U.S. gold futures were little changed at $1,812.00.
Benchmark U.S. Treasury yields edged down from their highest in more than a week touched in the previous session. Lower yields reduce the opportunity cost of holding bullion, which pays no interest.
The yellow metal struggled to defend the $1,800 threshold amid a sluggish Asian session on Monday. The yellow metal witnessed a lacklustre session the previous day amid an offer in multiple global markets. However, the recent escalation in the virus fears, coupled with the geopolitical headlines, challenge gold buyers of late.
Gold and silver prices settled on a positive note in the international markets on December 24. Gold February futures contract settled at $1,810.10 per troy ounce, up 0.01 per cent and silver March futures contract settled at $22.91 per troy ounce, up 0.40 per cent.
The yellow metal is expected to test $1,830 per troy ounce and silver could also test $23.50 per troy ounce. It has support at $1,800-1,788, while resistance is at $1,822-1,834 per troy ounce. Silver has support at $22.70-22.44, while resistance is at $23.10-23.40 per troy ounce.
COMEX trades little changed near $1,810/oz after a 0.4 per cent gain last week. Gold is stable as support from virus concerns, rising inflationary pressure and slowdown in China is countered by some recovery in the US dollar index and stable equities.
ETF flows also show weaker investor interest. Trades on the yellow metal may remain choppy amid a lack of fresh triggers and holiday impacted trade, however, we may not see a sustained rise unless the price breaks past the $1,815/oz and as Fed’s monetary tightening expectations lend support to the US dollar.
According to the technical chart, gold and silver look attractive on the daily chart; momentum indicator RSI is also indicating the same on the hourly as well as a daily chart. So, short-term investors are advised to create fresh longs on small dips near given support levels, traders should focus on important technical levels.
Gold, Dollar & Markets.
The dollar index inched up from its weakest level in nearly a week against its rivals, making greenback-priced gold less attractive for holders of non-U.S. currencies.
Japan’s retail sales rose faster than expected in November as fewer COVID-19 cases encouraged shoppers to ramp up spending on goods and services.
Analysts have said trading on the yellow metal is likely to remain thin and range-bound this week.
Spot silver edged up 0.1% to $22.95 an ounce, platinum dropped 0.4% to $970.34, and palladium was up 0.3% at $1,954.35.