The precious metals are steady in early Friday trade. Both gold and silver continued to hover around recent highs as the investors were weighing multiple factors, including US-Iran nuclear talks and dollar near three-week highs.
Gold holds above $5,200/oz level
Gold is back above the $5,200/oz level in early Asian trade on Friday. The dollar near 3-week highs is a concern as gold is dollar-denominated, and this makes gold more expensive for holders of other currencies.
Data from the US was also another factor that weighed on sentiment. The number of Americans filing new applications for jobless benefits increased slightly last week, and the unemployment rate appeared to hold steady in February amid a stable labour market.
Meanwhile, analysts also pointed out that the US Federal Reserve chair nominee Kevin Warsh’s rate cut hopes could be narrowing amid emerging bullishness about the US economy, growing CEO confidence in the outlook.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities pointed out that “Traders seem to keep risky bets off the able and wait for clarity into the sentiments around US & Iran nuclear talks. Gold has support near Rs 1,58,000/10 gm and resistance near Rs 1,64,000/10 gm. Participants await US Iran talks details.”
Silver near $90 level
The gains for silver continue too. The key precious and industry metal is hovering close to the psychologically important $90 per troy ounce levels, near the three-week highs. Investors are keying off a hawkish shift among the central bank’s policymakers.
On MCX, Silver Futures are trading near Rs 2,74,693/kg. This is nearly a 2% rally from the last close. All eyes are on how the safe haven demand pans out in the event of the ongoing US-Iran talks.
