Gold Price Today, 14 Jun 2022: Gold prices fall on weak global cues ahead of US Fed meet; support at Rs 50,000

Gold Rate Today, Gold Price in India on 14 June 2022: Gold prices in India were trading weak on Tuesday, as globally yellow metal hovered near a four-week low.

Gold Rate Today, Gold Price Today in India
The U.S. Treasury yields rose, adding more pressure to assets like gold.

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading weak on Tuesday, as globally yellow metal hovered near a four-week low. On Multi Commodity Exchange, gold August futures were ruling Rs 122 or 0.24 per cent down at Rs 50,542 per 10 gram, as against the previous close of Rs 50,664 per 10 gram. Silver July futures were ruling at Rs 60,122 per kg, down Rs 189 or 0.3 per cent on MCX. Internationally, yellow metal was weak as a strong dollar countered safe-haven demand fuelled by economic slowdown fears amid prospects of aggressive monetary policy tightening, according to Reuters. Spot gold was up 0.3% at $1,823.69 per ounce, after falling to its lowest since May 19 at $1,810.90 earlier in the session. U.S. gold futures fell 0.4% to $1,825.20.

Bhavik Patel, Commodity/Currency analyst, Tradebulls Securities

Panic selling was evident in all asset classes like stocks, gold and crypto as markets are re-pricing expectations for more aggressive Fed policy amid higher than expected US CPI inflation. US dollar shot to 20 year high talking along with it US Treasury yields which traded highest since 2011. Yesterday we also saw 2 yr and 10 yr US Treasury yield briefly inverting suggesting economic recession down the line. There are also concerns of a slowdown in China due to the latest Covid outbreak in Shanghai and Beijing. The supply chain disruption from China due to lockdown could feed into inflationary pressure. $1800 is the support zone for gold and breach below that could see gold tumbling to $1750. Investors will not take any positions before the Fed meet as they would want to know how aggressive Fed will be. So expect headwinds in gold this week. In MCX, gold has support around 50000 and around 48000 looks attractive for taking a long position.

Tapan Patel, Senior Analyst — Commodities, HDFC Securities

Gold prices traded firm on Tuesday with spot gold prices at COMEX were trading 0.43% up near $1827 per ounce in the morning trade. MCX Gold August futures opened lower near Rs. 50537 following weak  global cues  Gold prices halted decline as dollar index fell back below 105 after rallying sharply in previous trading. The surge in US bond yields may keep upside limited which are trading near 3.37%. The expectations of a larger than expected rate hike from FED led to selling in precious metals along with riskier assets on a dollar rally. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1810 and resistance at $1840 per ounce. MCX Gold Aug support lies at Rs. 50200 and resistance at Rs. 50800 per 10 gram.

Rahul Kalantri, VP Commodities, Mehta Equities

The U.S. Treasury yields rose, adding more pressure to assets like gold. Two-year Treasury yields advanced to a 15-year high, touching 3.25%, while 10-year yields climbed to 3.3% —the highest since 2011. The 2-year and the 10-year even briefly inverted on Monday, which is known as curve inversion and is often viewed as a precursor to economic recession. Gold has support at $1812-1800, while resistance is at $1834-1844. Silver has support at $20.84-20.55, while resistance is at $21.42-21.65. In INR terms gold has support at Rs 50,440–50,210, while resistance is at Rs 50,980–51,250. Silver has support at Rs 59,720-59,350, while resistance is at Rs 60,780–61,110.

(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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