Gold on MCX settled up 0.19% at 28739 prices recovered from the day's low while prices dropped in the morning session as the US dollar continued to remain supported by Federal Reserve policy tightening expectations. Recovery in the prices seen in late session with markets keeping a close eye on geopolitical risks and noting comments from the Fed chief that suggested the central bank is on track with plans to hike rates as forecast. The Federal Reserve's plans to raise U.S. interest rates gradually are aimed at sustaining full employment and near-2-percent inflation without letting the economy overheat, Fed Chair Janet Yellen said on Monday.
Also Yellen repeated earlier comments that the economy is expected to continue to grow at a moderate pace. Trading volumes across markets remained thin, as investors paused to reflect on rising geopolitical tensions in the Middle East, after last week’s U.S. missile strike on an airbase in Syria. Meanwhile, geopolitical tensions in Asia surfaced, following the U.S decision to move a Navy strike group toward the Korean peninsula amid continued missile tests by North Korea.
In the week ahead, investors will be eyeing Monday’s speech by Fed Chair Janet Yellen for fresh cues on the timing of the next U.S. rate hike and plans to trim the bank’s balance sheet. Traders will also be looking ahead to Friday’s U.S. data on retail sales and inflation ahead of the long Easter weekend. Technically market is under short covering and prices are getting support at 28640 and below same could see a test of 28541 level, And resistance is now likely to be seen at 28819, a move above could see prices testing 28899.