Trump slaps 30% tariffs on EU, Mexico
Gold yesterday settled up by 0.5% at 55756 as investors digest the latest economic data and try to gauge the next monetary policy steps. Federal Reserve Governor Philip Jefferson defended the central bank’s 2% inflation target, warning that changing it could destabilize inflation expectations. Money markets have now priced at least three more 25 basis point rate hikes this year and see interest rates peaking at around 5.5% by June. The precious metal is down more than 6% in February, on track for its sharpest monthly decline since June 2021. The U.S. Federal Reserve may hike interest rates to nearly 6%, BofA Global Research said, as strong U.S. consumer demand and a tight labor market would force the central bank to battle inflation for longer.
China's net gold imports via Hong Kong in January fell by about 47% from the previous month, Hong Kong Census and Statistics Department data showed. Net imports into the world's top gold consumer stood at 22.24 tonnes in January, compared with 42.16 tonnes in December, the data showed. Total gold imports via Hong Kong were down about 47.3% to 22.992 tonnes. Premiums on physical gold in top consumer China rose last week, helped by strong demand amid a dip in global rates, while prices in India traded at a discount on improved supplies.
Technically market is under fresh buying as the market has witnessed a gain in open interest by 0.82% to settle at 11269 while prices are up 280 rupees, now Gold is getting support at 55326 and below same could see a test of 54896 levels, and resistance is now likely to be seen at 55992, a move above could see prices testing 56228.
Trading Ideas:
# Gold trading range for the day is 54896-56228.
# Gold gained as investors digest the latest economic data and try to gauge the next monetary policy steps.
# Fed’s Philip Jefferson defended the central bank’s 2% inflation target, warning that changing it could destabilize inflation expectations.
# Fed might raise policy rates to 6% - BofA.