Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading lower on Wednesday, while the silver rate is down by 0.21%. On Multi Commodity Exchange, gold June futures were trading at Rs 61,273 per 10 grams, down Rs 146 or 0.24%. Silver July futures were trading lower by Rs 166 at Rs 77,290 per kg on MCX.
Globally, the yellow metal prices eased into a tight range on Wednesday as traders braced for key U.S inflation data due later in the day, which could impact the Federal Reserve’s policy stance, according to Reuters. Spot gold was down 0.1% at $2,031.43 per ounce, as of 0402 GMT. U.S. gold futures were down 0.2% at $2,038.20.
Tension between Europe and China beneficial for gold
“Buoyed by further deterioration in the U.S. NFIB small business outlook data in April, spot gold closed 0.68% higher at $2034.17.Currently, it is tad lower at $2031.The U.S. NFIB small business optimism Index fell 1.10 points in April to 89 Vs the estimate of 89.60, which marked the 16th consecutive month in which the Index remained below 49-year average of 98. The Index has slumped to more than ten-year low on near-term worrisome economic outlook and labor shortage amid high interest rate. The U.S. KBW Bank Index recovered after slipping at the start of the day.
“A slight miss in the U.S. CPI inflation data reading may not make a sustainable difference to gold prices, while even a slightly higher reading may weigh on prices of the yellow metal. Dip buying is preferred over chasing the rally trade.
“Simmering tension between Europe and China is supportive of gold. Traders will be closely watching developments in the U.S. regional banking sector, too. Support is at $2020/$2000/$1977. Resistance is at $2050/$2060,” said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.
Gold prices were flat in trade in Asia
“Gold price was flat during early Asian hours, as traders positioned themselves for inflation data that could impact the U.S. Federal Reserve’s policy stance. Fed Governor Philip Jefferson said the U.S. economy is slowing in an “orderly fashion”, while New York Fed President John Williams said it is too soon to say whether the U.S. central bank is done raising interest rates. In the previous month as well, comments from Fed official Williams changed the tone for the market and raised rate hike expectations from a pause. Market participants now factoring in a 77% probability for a pause, down from over 90%.
“President Joe Biden and top lawmakers agreed on Tuesday to further talks aimed at breaking a deadlock over raising the $31.4 trillion U.S. debt limit, with just three weeks before the country may be forced into an unprecedented default. Focus is now on key consumer price index inflation data due later in the day, which is likely to factor into the Fed’s decision on rate hikes. While inflation is expected to have retreated slightly in April from the prior month, it is still expected to read well above the Fed’s 2% annual target. Broader trend on COMEX could be in the range of $2015-2045 and on the domestic front, gold rate could hover in the range of Rs 60,800-61,600,” said Manav Modi, MOFSL.