Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading in the negative territory on Wednesday, taking cues from the weak global markets. Gold futures on MCX for April delivery were trading Rs 60 down at Rs 51.320 per 10 grams, while silver futures for May delivery were ruling at Rs 67,553 per kg, down Rs 139. Globally, yellow metal prices fell as U.S. Treasury yields gained after Federal Reserve officials insisted on sharper interest-rate hikes to combat inflation, although concerns over the Ukraine crisis slowed bullion’s decline, according to Reuters. Spot gold was down 0.2% at $1,918.29 per ounce. U.S. gold futures also slipped 0.2% to $1,918.40.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold prices fell over 1% to a near one week low after U.S. Governor Powell projected an aggressive stance w.r.t the interest rate trajectory this year to fight against soaring inflation, sending Treasury yields higher. Governor Powell in his speech mentioned that policymakers needed to move “expeditiously” and the Fed will take any measures necessary to combat rising inflationary pressure. Powell’s hawkish stance triggered a sharp bond market sell-off and sent the benchmark 10-year yields to their highest since May 2019. Also, continuous positive development in the Russia-Ukraine tension is also weighing on the prices. Ukraine mentioned that it is ready to discuss commitment of not joining NATO and status of Crimea and Donbas only after ceasefire. Market participants will keep and eye on U.S. home sales data and Fed Powell’s speech. Broader trend on COMEX could be in the range of $1910- 1940 and on domestic front prices could hover in the range of Rs 50,750-51,750.
Pritam Patnaik, Head – Commodities, HNI, and NRI Acquisitions, Axis Securities
While addressing the National Association for Business Economics yesterday, Powell’s hawkish side stood out. He made it clear that the Federal Reserve would be much more aggressive regarding upcoming rate hikes. Fed’s focus will be on price stability instead of employment generation, a theme that was earlier aggressively pursued by Fed. This has capped gold’s upside for the moment. That said, geopolitical concerns owing to the ongoing tensions created by Russia’s invasion of Ukraine and inflation at a 40-year high continue to be highly supportive of gold pricing. Largely, gold is expected to move within a range of $1900 to $1958.
Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities
Market has now started anticipating 50 basis point rate hikes in May and probably in June also which is why gold prices have slid below $1930. However gold prices still are steady and trading comfortably above $1900. This week there aren’t any major data so expect a narrow range in gold except any new updates coming from the Russia-Ukraine conflict. Gold prices will follow crude oil prices as high crude oil prices will be inflationary. In MCX, 51000 is immediate support while resistance comes around 51900. Maintain bullish intraday bias till 51000 is not breached on the downside.
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