Gold Rate Today, Gold Price on 14 Sep 2022: MCX gold nears 49800 support, watch out for these key levels; UK inflation eyed - Gold Price Forecast, Gold Price Outlook | The Financial Express

Gold Price Today, 14 Sep 2022: MCX gold nears 49800 support, watch out for these key levels; UK inflation eyed

Gold Rate Today, Gold Price in India on 14 Sep 2022: Gold prices were trading with a negative bias in India on Wednesday.

Gold Price Today, 14 Sep 2022: MCX gold nears 49800 support, watch out for these key levels; UK inflation eyed
Gold dropped from $1732 to $1697 before buyers emerged around its support zone of $1700 and brought the price to $1703

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading with a negative bias in India on Wednesday. On Multi Commodity Exchange, gold October futures were trading Rs 25 down at Rs 50,113 per 10 grams, as against Rs 50,138. Silver December futures were down Rs 351 or 0.6 per cent to Rs 56,460 per kg. Globally, yellow metal prices edged lower after hotter-than-expected U.S. inflation data boosted the dollar and fuelled expectations that the Federal Reserve will continue on an aggressive policy tightening path, according to Reuters. Spot gold fell 0.2% to $1,698.14 per ounce, Prices fell 1.3% on Tuesday, its biggest one-day percentage decline since July 14. U.S. gold futures were down 0.4% at $1,710.

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

Dollar index, yesterday, rose from ~107.70 to ~109.80; meanwhile amidst higher interest rate expectation a spike in U.S. Yields was also seen. U.S. consumer prices unexpectedly rose in August and underlying inflation accelerated amid rising costs for rents and healthcare. U.S. CPI on YoY basis rose to 8.3% against expectations of 8.1%; Core Cpi also rose by 0.3% from its expectations. After the inflation data, CME fedwatch tool which was showing almost 90% expectations of a 75bps rate hike, is now turned to 70% as expectation of 100bps is also getting factored in, adding further pressure on prices. A cautious approach is advised ahead of the volatility witnessed in Dollar Index and Yields. Focus today will be on U.K Inflation and U.S. PPI data. Broader trend on COMEX could be in the range of $1680-1725 and on domestic front prices could hover in the range of Rs 49,750- 50,475.

Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities

Gold dropped from $1732 to $1697 before buyers emerged around its support zone of $1700 and brought the price to $1703. US headline inflation came higher than expected although lower than last time. Market was surprised by 8.3% inflation compared to the expected figure of 8.1%. This triggered selling in all asset classes and US dollar and Treasury yield climbed sharply as expectation increased of another 75 bps rate hike in Dec.  Expectation of a 100bps rate hike in Sept also increased by 20%. Equities experienced one of the deepest daily selloffs with the Dow Jones industrial average losing 1276.37 points or 3.94% while gold slid by 1.63%. The dollar index gained 1.48%, the largest single-day move since March 2020. In MCX and in COMEX, gold is near its support zone of 49800 and $1695. If price drops below the support zone then expect prices to test levels of 49000-48500 and $1675. Any trader should keep their positions light as there will be volatility till 21st Sept.

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Tapan Patel, Senior analyst — Commodities, HDFC Securities

Gold prices traded steady on Wednesday with spot gold prices at COMEX were trading flat near $1702 per ounce in the morning trade. MCX Gold October futures held steady in the opening trade near Rs. 50114 per 10 gram. Gold prices held above $1700 per ounce after correcting over a stronger dollar following a spike in US inflation. The dollar index rebounded on expectations of a larger rate hike from the US FED in the upcoming meeting. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1680 and resistance at $1720 per ounce. MCX Gold October support lies at Rs. 49800 and resistance at Rs. 50500 per 10 gram.

(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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