What is the next resistance levels for gold?

Jul 17, 2023

This week (July 10 50 14), saw Gold prices showing signs of stabilizing across the board. However, the domestic market witnessed a marginal rise in prices to Rs 59240 / 10gm mark rising by 1% for the second week.

Internationally the price remained below the $2,000/oz mark at $1958.94/oz a trend which saw the market persistently capitalizing on softer inflation numbers in the US. Nevertheless, there was a slight increase compared to last week.

Bringing in hopes of the recent weakening in the price of gold perhaps, coming to an end. After the US CPI numbers declined to the 3% mark the bullion market anticipates that the US rate hike cycle shall come to a halt by the end of this year.

Going forward, gold prices in the domestic market are estimated to see a dip due to a fall in purchases during the period of Pitru Paksha, a period in the Hindu calendar where there is a delay in making purchase decisions.

However, with the onset of festivities from September onwards starting off with the Ganesh Chaturthi the market could witness an uptrend in demand due to additional purchases of gold and other precious gems leading to an increase in gold prices. The bullion market is anticipated to end the calendar year on a good note, said Colin Shah, MD, Kama Jewelry on weekly gold price trends!

On other hand from the bullion perspective, Prithviraj Kothari, MD CEO of RiddiSiddhi Bullions Limited said, as Gold and Silver prices have rebounded from their important support levels of $1900 and $22 respectively, this week as the Dollar Index has been hammered on weak Economic data from the US. Investors will be looking for additional cues from important U.S. CPI data.

But even though core CPI inflation is predicted to remain high, overall inflation is predicted to have decreased, which will likely prompt the FED to adopt the hawkish language, below please find quote/insights from Mr. Prithviraj Kothari, MD CEO of RiddiSiddhi Bullions Limited.

Gold and Silver prices are trading around one-month high levels amid the Dollar Index, which has fallen to 15 month low as US CPI grew less than anticipated. The annual CPI released was measured at 3%, the lowest level since March 2021 and the 12th consecutive month of declines.

As inflation is cooling, there are rising hopes that FED will pause Interest rate hikes soon, which is positive for Gold and Silver prices. Gold and Silver prices must sustain current levels to move higher towards the next resistance levels of Rs 60000 and Rs 75000, respectively.

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