Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading flat on Thursday, while the silver rate is down 0.54%. On Multi Commodity Exchange, gold August futures were trading at Rs 58,210 per 10 grams, up Rs 14 or 0.02%. Silver July futures were trading lower by Rs 368 at Rs 67,940 per kg on MCX.
Globally, the yellow metal prices hovered near a three month low on Friday and was set for its biggest weekly drop since February, as the dollar strengthened after U.S. Federal Reserve Chief Jerome Powell hinted about more interest rate hikes, according to Reuters. Spot gold ticked up 0.2% to $1,916.39 per ounce but stayed close to a three-month low hit earlier in the session. Prices are down 2% for the week. U.S. gold futures held steady at $1,925.90.
Gold to remain negatively biased
“Gold prices extended their overnight fall, with spot gold at Comex trading down by 0.10% at $1910 per ounce in the morning session. Gold prices settled at near three-month lows on Thursday following a wave of interest-rate hikes from central banks as well as more hawkish commentary from Federal Reserve Chairman Jerome Powell. Investor sentiment was knocked out after the Bank of England delivered a surprise 50 basis point rate hike, which was larger than the market had anticipated as the central bank struggles to tame the highest inflation. Gold prices have fallen nearly 8% since rising to near a record high in late May.
We expect short-term bias to remain negative in gold, and gold prices may witness a dip correction to $1884/oz below the $1903/oz level. For the day, Comex spot gold rate has support at $1903 per ounce and resistance at $1935 per ounce. MCX Gold August future has support at Rs 57,845 per 10 gram and resistance at Rs 58,610 per 10 grams,” said Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities.
Gold prices steady after hitting 3 month low
“Gold price is on track for its biggest weekly drop since February as prospects of additional interest rate hikes by the U.S. Federal Reserve this year weighed on bullion’s appeal. Governor Powell in his second day of testimony said the U.S. central bank would move interest rates at a “careful pace” from here as policymakers edge towards a stopping point for their historic round of monetary policy tightening. U.S. jobless claims, meanwhile, held steady at a 20-month high last week, potentially signalling a softening labour market in the face of the Fed’s aggressive rate hikes. The BoE raised interest rates by 50bps twice more than forecast — saying it needed to act against “significant” indicators that British inflation would take longer to fall. U.K.’s main interest rate is now at 5%.
“Ease off in the market uncertainty along with further rate hike expectations are sharply weighing on the gold and silver price. Meanwhile, Japan’s core consumer prices in May rose 3.2% from a year earlier, data showed on Friday, while manufacturing and service activity slowed. Focus today will be on the preliminary manufacturing and service PMI data from major economies,” said Manav Modi, MOFSL.