Gold Price Today, 10 May 2022: MCX gold support at Rs 50500, may trade sideways to down in intraday deals

Gold Rate Today, Gold Price in India on 10 May 2022: Gold prices in India were trading flat with positive bias on Tuesday as yellow metal rose in global markets

Gold Rate Today, Gold Price Today in India
Gold prices traded firm on Tuesday with spot gold prices at COMEX were trading near $1860 per ounce in the morning trade. Image: Reuters

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading flat with positive bias on Tuesday as yellow metal rose in global markets. On Multi Commodity Exchange, gold June futures were trading Rs 59 up at Rs 51,018 per 10 gram, as against the previous close of Rs 50,959. Silver July futures were ruling at Rs 61,848 per kg, up Rs 351 or 0.6 per cent, against the last close of Rs 61,497. Globally, gold prices edged higher on Tuesday as a decline in U.S. Treasury yields countered pressure on greenback-priced bullion from sustained strength in the dollar, according to Reuters. Spot gold was up 0.2% at $1,856.75 per ounce, while U.S. gold futures were down 0.3% at $1,853.90. Benchmark 10-year U.S. Treasury yields extended their decline on Tuesday after pulling back from the highest level in 3-1/2 years in the previous session, lifting prices of zero-yield gold for now.

Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities

Strong US Dollar (20 year high) and rising bond yields have contributed to fall across all major asset classes be it commodity or equity. Gold prices have bounced from its support of $1850 but it is not out of the woods yet. Yield on the 10 year US Treasury is at four year high and traders fear that global price inflation has gotten out of control. Another fear in the market is that aggressive monetary policy from central banks could derail growth and push economies into recession. These collective fears have pushed traders into safe assets like US dollar and treasuries while selling off precious metals and equity assets. For the third consecutive week, hedge funds reduced their bullish bets on gold and increased short exposure. Gold’s net length fell to a fresh three-month low. In MCX, gold has got support from weak rupee which is trading at all-time low. 50500 continue to be strong support and long positions can be taken with stoploss of 50500 and expected target of 51500 intraday.

Tapan Patel, Senior Analyst — Commodities, HDFC Securities

Gold prices traded firm on Tuesday with spot gold prices at COMEX were trading near $1860 per ounce in the morning trade. MCX Gold June futures opened lower near Rs. 50920 per 10 gram pressured by rupee appreciation. Gold prices halted decline near the support levels with fall in US bond yields and weaker dollar. The fall in equity indices also lent support to the precious metal. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1850 and resistance at $1872 per ounce. MCX Gold June futures support lies at Rs. 50700 and resistance at Rs. 51300 per 10 gram.

Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services

Gold and silver prices extended their retreat to fall more than 1%; on Monday as the dollar hovered near two decade highs, dimming the metal’s safe haven appeal. U.S. central bank’s policy tightening action has supported the rally in yields and Dollar which is currently hovering around 3.1% and 103.70 respectively. Economic calendar is muted for the day although market participants will be keeping an eye on the U.S. Inflation data scheduled this week which could give further direction to the metal. Broader trend on COMEX could be in the range of $1830-1890 and on domestic front prices could hover in the range of Rs 50,700-51400

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

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