Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices fell in India on Wednesday, as global rates slipped to a 3-month low ahead of US inflation data. On Multi Commodity Exchange, gold June futures were ruling Rs 222 or 0.44 per cent down at Rs 50,364 per 10 gram. Silver July futures were down Rs 249 or 0.41 per cent at Rs 60,369 per kg. Globally, yellow metal prices eased to a three-month low as an elevated dollar continued to pressure bullion while investors await monthly U.S. inflation data, which could have some impact on the Federal Reserve’s monetary policy stance, according to Reuters. Spot gold was down 0.3% at $1,832.06 per ounce, while U.S. gold futures fell 0.5% to $1,832.10.
Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities
Gold is extending a three week decline on strong US dollar and soaring US Treasury yields. Short term key support comes at $1800. The spread between the fed funds rate and CPI is at its widest, suggesting the Fed is struggling to contain inflation and aggressive Fed may lead to recession risk. Investors will keenly wait for the US CPI which is an integral component that will shape and influence market sentiment of individual investors, but it will also help to guide the Federal Reserve’s monetary policy at next month’s FOMC meeting. Near term concerns of aggressive monetary tightening, rising yields and strong dollar will keep gold prices in check. We expect prices to remain under pressure with 49500 support in MCX. 51500 is resistance for gold and any upside momentum will only come above that level. Till then expect more pain in gold prices.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold prices saw a steady move in the first half of the session although eased to a three month low in the latter half, as hawkish comments from Fed officials and an elevated dollar continued to pressure bullion while investors await monthly U.S. inflation data, which could have some impact on the Federal Reserve’s monetary policy stance. Fed officials fortified their arguments for the swiftest series of interest rate hikes since at least the 1990s to combat inflation, while President Joe Biden urged the U.S. central bank to tame the price increases he said were hurting American households. Market participants today will keep an eye on the U.S. inflation data which could give further direction to metal prices. There are expectations of YoY inflation being recorded lower to 8.1% than the previous month of 8.5%, this could lead to some initial pressure on metal prices. Fall in both metals with higher pace has led to a surge in gold/silver ratio which is currently at ~85 levels from high 70’s, hence keeping an eye on this will also be very important. Broader trend on COMEX could be in the range of $1815- 1857 and on domestic front prices could hover in the range of Rs 50,000- 50,600
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
COMEX gold trade marginally lower near $1837/oz and has tested 3-month low near $1830/oz. Gold has continued to set fresh lows amid Fed’s monetary tightening stance which has kept US dollar and bond yields higher. ETF outflows also shows investors are exiting the metal. Global growth worries and inflation concerns have dented market sentiment but market players are preferring US dollar over other safe havens. Gold may remain under pressure until we see a sizeable correction in the US dollar index.
Tapan Patel, Senior Analyst Commodities, HDFC Securities
Gold prices traded steady on Wednesday with spot gold prices at COMEX were trading near $1837 per ounce in the morning trade. Gold June futures at MCX were trading down near Rs. 50363 per 10 gram. Gold prices witnessed sell off on Tuesday as a stronger dollar lowered the demand for the precious metals. The dollar index was trading near two decade highs ahead of key US inflation data. Gold prices are hovering near the support zone of $1830-1810 and we may see some accumulation near this range in the short term. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1810 and resistance at $1850 per ounce. MCX Gold June support lies at Rs. 50200 per 10 gram and resistance at Rs. 50800 per 10 gram.
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