Gold Price Today, 1 March: Gold trades flat, dollar softens; traders eye US manufacturing, services PMI

Gold Rate Today, Gold Price in India on 1 March: Gold prices rallied in the last session as the dollar index weakened after weaker-than-expected Consumer Confidence data.

Gold Rate Today, Gold Price Today in India
Comex Gold is nearing the resistance zone of the $1840 level

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading flat on Wednesday despite positive global cues, while the silver rate is up 0.29%. On Multi Commodity Exchange, gold April futures were trading at Rs 55,722 per 10 grams, down Rs 34 or 0.06%. Silver May futures were trading higher by Rs 186 at Rs 64,809 per kg on MCX.

Globally, the yellow metal prices edged up for a third session on Wednesday as the dollar pulled back, although fears of more U.S. interest rate hikes on the back of stubbornly high inflation kept a lid on prices, according to Reuters. Spot gold was up 0.1% at $1,829.37 per ounce. U.S. gold futures eased 0.1% to $1,835.30.

Gold rallies on weaker dollar

“Gold prices rallied in the last session as the dollar index weakened after weaker-than-expected Consumer Confidence data. The data print surprisingly came at 102.9 against the expectation of 108.5. The Fed may be hesitant to adopt an aggressive rate hike stance after weak no. This uncertainty uplifted precious metals. Comex Gold is nearing the resistance zone of the $1840 level. Investors are waiting for ISM Manufacturing PMI and ISM services PMI which will be released this week to take further cues from Fed. In the domestic market, resistance zone is seen around 55,950 and support is placed around 55,500,” said Deveya Gaglani, Research Analyst- Commodities, Axis Securities.

Gold trades steady after logging two-day recovery

Gold price trade steady after logging a two-day recovery from their lowest levels this year, with focus remaining on any more signals on U.S. economy and the Federal Reserve. Some relief was witnessed amidst softer than expected U.S. business activity and consumer confidence data, which indicated that certain facets of the economy were cooling under rising interest rates. U.S. consumer confidence unexpectedly fell in February, with a decrease concentrated among lower-middle-income households, though Americans grew more upbeat about the labor market.

“There is an expectation in the market that the Fed could keep the pace of interest rate hike higher which is capping gains for metal prices. While there are also bets in the market regarding further slowdown in the U.S. economy this year, that could push the Fed into pausing its rate hike cycle. After weak consumer confidence numbers, focus this week will be on Manufacturing and Service PMI data. Broader trend on COMEX could be in the range of $1810- 1850 and on domestic front prices could hover in the range of Rs 55,200-56,100,” said Manav Modi, MOFSL.

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First published on: 01-03-2023 at 10:49 IST
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