Gold Price Today, Gold Price Outlook, Gold Price Forecast: MCX Gold prices tumbled on strong U.S. dollar on Thursday, while the silver rates plunged as much as 0.61%. On the Multi Commodity Exchange, gold October futures were trading at Rs 59,324 per 10 grams, down by Rs 147 or 0.25%. Silver September futures were trading down by Rs 446 at Rs 72, 514 per kg on MCX.
Gold prices held near three-week lows on Thursday after a larger-than-expected increase in U.S. private payrolls in July fuelled bets on more monetary policy tightening and boosted the dollar and bond yields, according to Reuters. Spot gold was up 0.2% at $1,937.39, trading near its lowest level since July 12 hit in the previous session. U.S. gold futures fell 0.1% to $1,972.90 per ounce.
Gold to remain volatile
“Gold prices faltered for the second consecutive day on Wednesday on the back of rising US bond yields. Both precious metals, gold & silver, fell after Fitch downgraded U.S. debt ratings from AAA to AA+. The dollar index jumped to three week highs and the U.S. 10-year bond yields hit 4.10% amid safe-haven demand. Surprise rating downgrades by Fitch triggered a sell-off in precious metals. Gold and silver also plunged after better than expected U.S. ADP non-farm payroll data,” said Rahul Kalantri, VP Commodities, Mehta Equities.
“We expect gold and silver prices to remain volatile this week ahead of the U.S. job report and fluctuation in the dollar index. Gold has support at $1926-1912 while resistance is at $1948-1961. Silver has support at $23.55-23.40, while resistance is at $23.95-24.12. In INR terms gold has support at Rs 58,880-58,640. while resistance is at Rs 59,440-59,610. Silver has support at Rs 72,480-72,020, while resistance is at Rs 73,640–74,120,” Rahul Kalantri added.
Gold faces resistance from strong U.S Dollar
“Gold traded flat on Thursday after hitting a three-week low in the previous session as U.S. treasury yields jumped due to more U.S. debt being issued and strong labour market data. Spot gold at Comex traded slightly up by 0.02% at $1937 per ounce in the morning session. Yields on U.S. 10-year bonds reached their highest since November on Wednesday, with gains spurred by a plan to boost sales of longer-term notes to a more-than-expected $103 billion next week. Additionally, the dollar index rose above the 102.0 level after stronger-than-expected payrolls data was released by ADP. A strong U.S. dollar and higher yields are generally negative for precious metals,” said Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities