Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading in green on Wednesday, as globally yellow metal inched up from a near one-month low. On Multi Commodity Exchange, gold August futures were trading Rs 138 or 0.3 per cent up at Rs 50,345 per 10 gram. Silver July futures were ruling at Rs 59,916 per kg, up Rs 415 or 0.7 per cent on MCX. Globally,yellow metal prices inched up from a near one-month low as investors awaited a potentially aggressive and key interest rate hike announcement from the U.S. Federal Reserve as it seeks to combat inflation amid mounting fears of an impending recession, according to Reuters. Spot gold was up 0.1% at $1,810.59 per ounce after dropping to its lowest since May 16 at $1,803.90 on Tuesday. U.S. gold futures fell 0.1% to $1,811.30.
Bhavik Patel, Commodity/Currency analyst, Tradebulls Securities
Gold once again took support around $1800 and bounced back to $1815 but is looking vulnerable. Today’s FOMC will be a key trigger for precious metals. Until last Friday, anticipation was of 50bps rate hike but with higher than expected CPI number, expectation has started of 75bps. The high probability of a much more hawkish monetary policy by the Federal Reserve has pressured gold dramatically lower this week. If the Fed raises rates by 75bps then we can expect gold breaching the psychological level of $1800 on the downside. If the Federal Reserve continues to raise rates by 50-basis points we could see gold prices bounce higher because market participants have largely factored a more aggressive rate hike into current gold pricing. We expect gold to remain under pressure and take any fresh positions tomorrow post FOMC meet.
Tapan Patel, Senior Analyst — Commodities, HDFC Securities
Gold prices traded firm on Wednesday with spot gold prices at COMEX trading nearly half a percent up near $1816 per ounce in the morning trade. MCX Gold August contract was trading near Rs. 50231 per 10 gram in the opening trade. Gold prices halted decline with weaker dollar and fall in US bond yields. The dollar index was trading around 0.31% down while 10 year US Treasury yields were trading near 3.42% in the morning. Gold prices may cap upside on aggressive FED stance with expectations of 75 bps rate hike against previous census of 50 bps. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1800 and resistance at $1830 per ounce. MCX Gold August futures support lies at Rs. 49800 and resistance at Rs. 50600 per 10 gram.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold and silver prices continued to inch lower trading near important support zones, as the dollar resumed its climb and hit a 20-year high, eroding bullion’s safe-haven appeal on investor bets of aggressive rate hikes by the U.S. Federal Reserve. Since the start of the week as a higher interest rate trajectory sentiment has set in we are witnessing a steep rally in U.S. Yields and Dollar which is currently over 3.4% and 105 respectively. Focus today will be on the Fed policy meeting where along with a rate hike, market participants are also expecting comments regarding its balance sheet trimming action. Till now 50 bps rate hike was factored in the market although, after the higher U.S. inflation data, market participants are also discounting a 75bps rate hike, the reaction of which we are seeing on metal prices. Expectations for a 75 basis point hike at the Fed’s two-day policy meeting jumped to 96%, according to CME’s Fedwatch Tool. Such a hike would be the biggest since 1994. Today apart from the Fed’s policy meeting, focus will also be on the U.S. Retail Sales data. A cautious approach is advised ahead of the comments and expectations of an aggressive decision from fed. Broader trend on COMEX could be in the range of $1805- 1835 and on domestic front prices could hover in the range of Rs 49,860 – 50,660.
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