Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading with cuts on Thursday, while the silver rate is down 1.87%. On Multi Commodity Exchange, gold August futures were trading at Rs 58,900 per 10 grams, down Rs 398 or 0.67%. Silver July futures were trading lower by Rs 1,339 at Rs 71,312 per kg on MCX.
Globally, prices of the yellow metal fell to a near three-month low on Thursday as the dollar gained after the U.S. Federal Reserve hinted at further interest rate hikes this year, according to Reuters. Spot gold fell 0.4% to $1,935.09 per ounce, hitting its lowest since March 17. U.S. gold futures dropped 1.1% to $1,947.10.
Gold falls on US Fed’s hint of future rate hikes
“Gold prices ended the last session unchanged, facing sustained pressure throughout the day. The highly anticipated Federal Reserve meeting concluded, resulting in the first pause in interest rates after 16 months. However, the Fed chairman hinted at the potential for two additional rate hikes this year, depending on market conditions and economic data. This announcement had a detrimental effect on gold price in the COMEX market, as the dollar index strengthened, further strengthening the bearish sentiment. A robust support zone is observed at around $1920, while resistance is positioned around $1980,” said Deveya Gaglani, Research Analyst – Commodities, Axis Securities.
Gold prices trade with cuts
“Gold and silver price slipped as Treasury yields and dollar index rebounded, following the Federal Reserve’s widely expected pause on interest rate hikes, although hints of a further increase pinned bullion lower. A day before the Fed meeting, US inflation data was reported at 4% against the previous data of 4.9%, which supported the metal prices on the lower end. The Fed kept their interest rate unchanged, for the first time in more than a year following 10 consecutive increases but signaled its intention to implement further rate hikes.
The Fed, in new economic projections, signaled that a stronger than expected economy and a slower decline in inflation will result in a likely rise in borrowing costs by another half-a-percentage point by the end of this year. Meanwhile, Governor Powell said it is too soon to say inflation will continue to retreat even as officials expect price pressure to stay on a cooling trend. Policy meeting from the ECB is also scheduled today, wherein they are expected to raise borrowing costs to their highest level in 22 years and leave the door open to more hikes. Focus today will also be on the US Retail sales and Industrial production data,” said Manav Modi, MOFSL.