Gold price today 26-05-2021: Kedia Securities says that Gold settled up by 0.65% at Rs 48867 on TUesday buoyed by a weaker dollar but with gains capped after comments from US Federal Reserve officials calmed fears about inflation. Fed Board Governor Lael Brainard and other officials in separate remarks all backed the U.S. central bank’s current easy monetary policy view. 

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The recent rise in U.S. inflation is unlikely to lead to the kind of undesirably high inflation that some notable economists have warned about, Federal Reserve Bank of Chicago President Charles Evans said, reiterating his support for the Fed’s super-easy policy. “I have not seen anything yet to persuade me to change my full support of our accommodative stance for monetary policy or our forward guidance about the path for policy,” Evans said in remarks prepared for delivery to a Bank of Japan conference.

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Critics including former Treasury Secretary Larry Summers say the Fed’s promise to keep rates at their current near-zero level until the economy reaches full employment and inflation has reached 2% and is on track to exceed that level moderately for some time is a recipe for overheating the economy. 

Gold could receive support from higher Chinese physical demand if China has been importing more gold from Switzerland and Hong Kong due to commercial banks there being granted higher import quotas for April and May. Technically market is under short covering as market has witnessed drop in open interest by -0.07% to settled at 5474 while prices up 314 rupees, now Gold is getting support at Rs 48502 and below same could see a test of Rs 48137 levels, and resistance is now likely to be seen at Rs 49063, a move above could see prices testing Rs 49259, explains Kedia Securities.

Gold trading range for the day is Rs 48137 – Rs 49259. Gold steadied buoyed by a weaker dollar but with gains capped after comments from U.S. Federal Reserve officials calmed fears about inflation. Fed's Evans says easy monetary policy has his 'full' support. Fed Board Governor Lael Brainard and other officials in separate remarks all backed the U.S. central bank’s current easy monetary policy view.