Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading flat on Tuesday despite mixed global cues, while the silver rate is up 0.55%. On Multi Commodity Exchange, gold April futures were trading at Rs 57,706 per 10 grams, up Rs 64 or 0.11%. Silver May futures were trading higher by Rs 365 at Rs 67,017 per kg on MCX.
Globally, the yellow metal prices slipped on Tuesday from a more than five-week high, but held just above the key $1,900 level as expectations grew that the U.S. Federal Reserve would dial back its rate hikes after the collapse of two big regional banks. Spot gold was down 0.6% at $1,901.91 per ounce, after rising more than 2% on Monday to hit its highest since Feb. 3. U.S. gold futures fell 0.5% to $1,907.30.
Gold prices to remain volatile
“Gold and silver showed solid strength on Monday and gold prices crossed $1900 per troy ounce and silver prices also crossed $21.64 per troy ounce after SVC bank fallout in the United States. Gold at six week highs and silver is also at nearly one month highs, banking crisis in the U.S. supported safe-haven buying in precious metals. The dollar index plunged again and slipped below 103.30 while 10-year bond yields crashed and slipped below 3.60%. The U.S. Fed Chairman said that we are watching the situation and there is a possibility for no more rate hikes after the latest banking crisis. Goldman Sachs is expecting no more rate hikes from the U.S. Fed in the upcoming policy meetings.
We expect gold and silver to remain highly volatile in today’s session ahead of the U.S. inflation data. Gold has support at $1888-1874 while resistance at $1922-1932. Silver has support at $21.44-21.25, while resistance is at $21.82-21.98. In INR terms gold has support at Rs 57,320-57,110, while resistance is at Rs 57,810, 57,980. Silver has support at Rs 66,120-65,510, while resistance is at Rs66,990–67,480,” said Rahul Kalantri, VP Commodities, Mehta Equities.
Gold prices around key level of $1,900 on expectations of less aggressive rate hike possibility
“Gold prices hover around the key level of $1,900 as expectations of less aggressive Federal Reserve rate hikes after the collapse of two big U.S. regional banks lifted non-yielding bullion’s appeal. Gold prices jumped more than 2%; while silver prices jumped by more than 5%, despite efforts by U.S. officials to limit the fallout from the now-shuttered Silicon Valley Bank and restore investor confidence in the banking system. After Governor Powell’s hawkish statements last week’s market participants were pricing a 50 bps rate hike, however after weak U.S. unemployment rate and average hourly earning data the expectations have shifted to 25 bps. In fact, according to the CME Fedwatch tool, there is also a probability of no rate hike being discounted by the market.
“Amidst these factors, we saw a sharp fall in Dollar Index and U.S. Yields, which supported a move in gold and silver prices. Investors now shift their focus towards U.S. CPI data scheduled later today, which could provide further clarity regarding Fed further stance. If the data is reported lower than expectations we could witness further support in gold and silver prices. Broader trend on COMEX could be in the range of $1890-1920 and on domestic front prices could hover in the range of Rs 57,200-57,750,” said Manav Modi, MOFSL.