Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate were trading in the negative territory in India on Thursday due to weak global trends. On Multi Commodity Exchange, gold December futures were trading at Rs 52,950 per 10 gram, down Rs 142 or 0.27 percent. Silver December futures were trading Rs 416 or 0.67 per cent down at Rs 61,760 per kg. Globally, gold prices fell on Thursday due to a strengthening dollar, as the US retail sales data was better than expected, negating the possibility of a smaller rate hike, according to Reuters. Spot gold was down 0.6% at $1,763.19 per ounce. U.S. gold futures fell 0.5% to $1,766.10.
Pritam Patnaik, Head – Commodities, HNI and NRI Acquisitions, Axis Securities
With the suspicion that a recent missile attack on a Polish city was orchestrated by Russia, turning out not to be true has helped to avert a major geopolitical flash point, which could have escalated into a major military face-off between Russia and the NATO nations. This has led to the shaving off of some of the safe-haven premium built into bullion prices. USD 1780 is a major resistance level for international gold prices. Thus, we have witnessed some profit taking at these levels. Once these levels are taken out , the prices could easily rally toward $1800 and beyond. The stage looks well set for a potential rally in the medium to long run, as plateauing inflation, weaker USD and stalling bond yields could act as the catalyst of the next bull run in gold prices. So, we maintain a buy on dip’s strategy.
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Ravindra Rao, CMT, EPAT VP-Head Commodity Research, Kotak Securities
COMEX Gold trades flat for the second straight session as bulls have failed in keeping it above the $1780/oz level. Having said that $1780/oz has become an important resistance level. In yesterday’s session gold ended near $1776/oz, a fall by 0.06% compared to previous closing. However, MCX gold active contract gained by 0.60% amid weak Rupee against the US Dollar. Fears of geo political escalation have faded after Poland’s president dismissed that missile came from Russia and that it was probably a stray Ukrainian defence projectile. Gold is still supported by expectation of a slower pace of rate hikes by the US Fed in their upcoming meeting amid softening inflation numbers. On the price action front we maintain our view that $1780/oz would act as an immediate resistance. If the bulls succeed in taking out $1780/oz on closing, the rally might extend till $1806/oz which is a strong 252 DMA resistance.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold prices were flat as safe-haven demand from latest geopolitical concerns faded, while hopes that the U.S. Federal Reserve would be less aggressive on rate hikes over coming months underpinned the market. Gold and silver prices did witness a rally in the first half of yesterday’s session marking a peak of ~$1785 and ~$22.10 respectively, after news that Russian missiles killed two people in Poland near the Ukraine border. This sudden news of an attack increased uncertainty in the market, supporting the safe haven appeal dollar index and precious metals. However, Poland’s president said that the missile that hit his country was probably a stray Ukrainian defense projectile, dispelling fears that it came from Russia and could widen the Ukraine crisis. Focus remained on Fed’s interest rate strategy, with traders pricing in a ~85% probability of a 50bsp of rate hike at the Fed’s Dec meeting. On the data front, U.S. retail sales increased more than expected in October, boosted by purchases of motor vehicles and a range of other goods; while the industrial production data was reported weaker than expectations. Broader trend on COMEX could be in the range of $1735-1780 and on domestic front prices could hover in the range of Rs 52,600-53,175.
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