Shillong, June 23: According to Saumil Gandhi, a senior analyst at HDFC Securities, gold prices may experience a correction in the short term, leading to a negative bias for the precious metal.
On Friday, the spot gold price at Comex showed a slight recovery, trading up by 0.17% at $1,917 per ounce. Meanwhile, the gold August future contract at MCX was up by 0.10% at Rs 58,255 per 10 grams by noon.
Gandhi noted that gold prices had corrected nearly 1.0% in the previous session, influenced by interest-rate hikes from central banks and more hawkish comments from Federal Reserve Chairman Jerome Powell. Investor sentiment was further impacted by the unexpected 50 basis point rate hike by the Bank of England, which aimed to combat rising inflation.
Since reaching a near-record high in late May, Comex spot gold prices have fallen by almost 8%.
Looking ahead, Gandhi predicts a negative bias for gold in the short term, suggesting a potential dip correction to $1,884 per ounce, falling below the $1,903 per ounce level.
In terms of support and resistance levels, Comex spot gold has support at $1,903 per ounce and resistance at $1,935 per ounce. Meanwhile, MCX Gold August futures have support at Rs 57,845 and resistance at Rs 58,610.