Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading lower on Wednesday, while the silver rate is up 0.06%. On Multi Commodity Exchange, gold August futures were trading at Rs 59,968 per 10 grams, down Rs 30 or 0.05%. Silver May futures were trading higher by Rs 46 at Rs 71,089 per kg on MCX.
Globally, the yellow metal prices eased on Wednesday, set for a monthly drop, as progress in the U.S. debt ceiling deal and expectations that the Federal Reserve will likely raise interest rates further eroded bullion’s safe-haven status, according to Reuters. Spot gold fell 0.2% to $1,955.28 per ounce by 0243 GMT, and lost 1.7% so far this month. U.S. gold futures eased 0.2% to $1,954.80.
Gold prices regain after yesterday’s loss
“Gold price bounced back from early losses in the previous session, amidst a fall in Dollar and Treasury yields, following a wider market optimism about the U.S. debt ceiling deal. Top congressional Republican Kevin McCarthy urged members of his party to support a bipartisan deal to lift the $31.4 trillion U.S. debt ceiling, and a key party hardliner said he would likely support the measure in a critical procedural vote. Fed funds futures traders now see the Fed as more likely to hike interest rates next month than leave them unchanged, amidst positive economic data and ease off in debt ceiling concerns. The probability chart shows about more than a 60% chance for a 25 bps rate hike which was till last week in favour of a pause.
“Surprisingly, US consumer confidence data was reported higher than anticipated yesterday showing market’s optimism regarding the economy and weighing on bullions. Focus today will be on comments from a few fed officials and India GDP data. Broader trend on COMEX could be in the range of $1940-1970 and on domestic front prices could hover in the range of Rs 59,500-60,350,” said Manav Modi, MOFSL.
Gold trades slightly muted
“Gold price traded slightly down with spot gold at Comex was trading lower by 0.04% at $1958 per ounce in the morning trade. Gold rate is down almost 1.50% this month erasing gains made earlier in May when it surged to near a record on fears of a US default. Those concerns have been largely alleviated as President Joe Biden and Republican House Speaker Kevin McCarthy express confidence that lawmakers will pass legislation in time to avert such a scenario. Additionally, the rally in the US dollar and bond yields weighed on yellow metal.
“We expect range-bound trade will continue in gold rate, with Comex spot gold likely to trade in the range of $1935 to $1970 per ounce for the day. Comex spot gold has support at $1935/$1923 per ounce and resistance at $1970/$1984 per ounce for the day. MCX Gold August future has supports at Rs 59,480/59,270 per 10 gram and resistances at Rs 60,080/60,450 per 10 grams,” said Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities.