Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading lower on Wednesday as a result of negative global cues, while the silver rate is down 0.42%. On Multi Commodity Exchange, gold April futures were trading at Rs 56,533 per 10 grams, down Rs 217 or 0.38%. Silver March futures were trading lower by Rs 278 at Rs 65,973 per kg on MCX.
Globally, the yellow metal prices edged up marginally on Wednesday as the dollar eased, while US inflation data released on Tuesday raised expectations that the Federal Reserve will persist with monetary policy tightening, according to Reuters. Spot gold was up 0.1% at $1,856.47 per ounce. US gold futures were little changed at $1,865.80. The dollar index eased 0.1%, making greenback-priced gold less expensive for buyers holding other currencies.
Gold prices moved little: Manav Modi, MOFSL
Gold prices moved little as mixed inflation data for January brewed some uncertainty over the U.S. economy and the path of monetary policy, with the dollar also showing a muted reaction to the readings. The consumer price index increased 0.5% on MoM in line with the expectations. However, on a YoY basis the CPI increased 6.4% against expectations of 6.2%. Data justifies fed governor’s recent comments regarding sticky inflation and more rate hikes in 2023.
Fed officials said the US central bank would need to keep gradually raising interest rates to beat inflation and suggested sticky price pressures driven by a hot jobs market may push borrowing costs higher than they once thought. It will also be now important to keep an eye on other major economic data points to gauge the overall health of the economy. Focus today will be on the UK CPI, US Retail Sales and IIP data. Broader trend on COMEX could be in the range of $1830-1865 and on domestic front prices could hover in the range of Rs 56,200-56,900.
Gold pared earlier gains: ICICIdirect report
Gold prices pared their earlier gains as US Fed members held their hawkish stance after consumer price data came out higher than expected on Tuesday. US CPI print was at 6.4% vs. market expectation of 6.2%. Silver prices slid to their December 2022 lows as the US 10 year yield rallied sharply amid expectation of higher rates by the Fed. Market participants anticipate that strong labor market and higher than expected CPI data may force the US Fed to raise its policy rate at least twice in its upcoming meetings, pushing rates towards 5-5.25% range. Gold prices are trading near four week lows at 56,380. A move below this level would weaken the price towards 56,000, followed by 55,800. MCX silver has been trading below the key support of 50 day EMA at 67,200. As long as it resists 67,200, it is likely to slide towards the next support of 65,200.