Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading muted in India on Wednesday as yellow metal fell on strength in the dollar globally. On Multi Commodity Exchange, gold August futures were ruling at Rs 50,499 per 10 gram, up Rs 42 or 0.08 per cent. Silver September futures were down Rs 57 to Rs 56,409 per kg. Globally, yellow metal prices hovered near a more than nine-month low with the dollar continuing to hurt bullion demand, while investors awaited monthly U.S. inflation data for cues on the road ahead for the Federal Reserve’s monetary policy, according to Reuters. Spot gold was little changed at $1,726.27 per ounce, after dropping to its lowest level since late-September at $1,722.30 earlier. U.S. gold futures dipped 0.2% to $1,721.80.
Tapan Patel, Senior Analyst — Commodities, HDFC Securities
Gold prices traded steady on Wednesday with spot gold prices at COMEX were trading near $1728 per ounce in the morning trade. MCX Gold August futures opened near Rs. 50481 per 10 gram in line with firm global prices. Gold prices continued to be hammered by a stronger dollar which rose to the highest level since October 2002. The market players are awaiting US inflation data today which may gauge FED stance over rate hike. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1710 and resistance at $1740 per ounce. MCX Gold August support lies at Rs. 50100 and resistance at Rs. 50800 per 10 gram.
Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities
Gold has tumbled to $1726, falling by around 12% in the last 3 months as the US dollar is trading at 20 year high. The biggest driver for gold prices is the US Dollar. U.S. consumer price index data, a key measure of inflation, is due today, and is expected to show prices rose by 8.8% in June from a year earlier. Gold was resilient because of inflation worries but now expectation is that inflation has topped out and will ease but recession fear is increasing which is paving way for inflows into safe haven currency like US dollar and outflows from all risky assets like gold. Many speculative longs have exited from the market and only long lean remains. Gold’s net length now stands at 17,034 contracts, down more than 52% from the previous week. Gold’s net length is at a three-year low which is also a sign of reversal in the short term. In MCX, 50000 levels are holding because of weak INR which is trading near all-time low but in the short term pressure on the downside will remain.
Ravi Singh, Vice President & Head of Research, Share India Securities
Gold prices are slowly pulling upwards amid high inflationary pressure, geopolitical tensions and global growth worries. The consolidation in gold may continue unless there are fresh triggers, however, gains in US dollar and continuing Fed’s tightening expectations may keep pressure on prices.
Buy Zone Above – 50700 for the target of 51000
Sell Zone Below – 50300 for the target of 50100
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