Gold prices held above the key $1,900 per ounce level on Tuesday as expectations of less-aggressive Federal Reserve rate hikes after the collapse of two big U.S. regional banks lifted non-yielding bullion's appeal.
* Spot gold was trading flat at $1,913.54 per ounce. The U.S. gold futures were also listless at $1,916.20.
* Gold prices jumped more than 2 per cent on Monday to hit their highest since February 3 at $1,914.58 despite efforts by U.S. officials to limit the fallout from the now-shuttered Silicon Valley Bank and restore investor confidence in the banking system. The regulators had shuttered New York-based Signature Bank on Sunday.
* HSBC bought the UK arm of Silicon Valley Bank for a symbolic one pound on Monday, rescuing a key lender for technology start-ups in Britain.
* Markets are now largely pricing in a 25-basis-point rate hike at next week's Fed policy meeting, with a 31.4 per cent chance of a pause in hikes.
* Gold is considered a hedge against economic uncertainties, and tends to gain on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion.
* The U.S. consumer price index (CPI) report for February due at 1230 GMT will be closely watched for cues on the Fed's rate-hike plan.
* The dollar index was up 0.2 per cent, making bullion more expensive for buyers holding other currencies.
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 1.31 per cent to 913.27 tonnes on Monday from 901.42 tonnes on Friday.
* Spot silver edged up 0.1 per cent to $21.83 per ounce, platinum eased 0.1 per cent to $995.21 and palladium was unchanged at $1,473.33.
The spot gold may retest a resistance of $1,917 per ounce, a break above could lead to a gain into the $1,925-$1,938 range.
A wave c has travelled above its 176.4 per cent projection level of $1,905. It is likely to extend into a range of $1,938-$1,951. A retracement analysis on the downtrend from $1,959.60 to $1,804.20 reveals a break above the key resistance of $1,900.
The chances are high for $1,959.60 could be revisited soon. The support is at $1,894, a break below which may be followed by a drop to $1,884.
On the daily chart, gold may have resumed its uptrend from the Nov. 3, 2022, low of $1,615.59, as confirmed by the successive gains over the past three trading sessions.
A projection analysis on the uptrend from $1,727.50 marks a target zone of $1,963-$2,004.
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.