Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading half a per cent up on Thursday, even as globally yellow metal rates remained steady. On Multi Commodity Exchange, gold August futures were trading Rs 231 or 0.5 per cent up at Rs 50,669 per 10 gram, as against the previous close of Rs 50,438. Silver July futures were up at Rs 61,139 per kg, gaining Rs 442 or 0.7 per cent on MCX. Globally, yellow metal was flat after a jump in the previous session on falling Treasury yields and a weaker dollar, which were driven lower by a large but widely expected interest rate hike announcement from the U.S. Federal Reserve, according to Reuters. Spot gold was little changed at $1,832.86 per ounce. U.S. gold futures rose 1% to $1,836.90.
Pritam Patnaik, Head – Commodities, HNI, and NRI Acquisitions, Axis Securities
Yesterday, the US Fed announced a 75 basis point increase in interest rate, the highest rate hike since 1994, in an attempt to battle the ever rising inflation. The US central bank also revised up inflation forecasts for this year , while also signaling a 50 bp or 75 bp rate hike in the next meeting. However, the Fed’s rejection of the odds of a 100 bp rate increase and Chairman Jerome Powell’s measured comments seem to have drowned the Treasury yields and the US dollar afterward. The US 10-year Treasury yields extended losses, down seven basis points to 3.33% and the Dollar index dropped close to 104.51 levels, this helped the gold bulls register a short and sharp rally. The rally is expected to fizzle out in the medium term in the face of a higher rate environment.
Tapan Patel, Senior Analyst — Commodities, HDFC Securities
Gold prices held steady on Thursday with COMEX Spot gold prices were trading near $1832 per ounce in the morning trade. MCX Gold Aug futures were trading near Rs. 50619 per 10 gram in the opening trade. Gold prices held strong post US FOMC rate decision where FED hiked key interest rates by 75 bps, the largest since 1994. The weaker dollar and fall in US bond yields pushed bullion prices higher on economic growth worries. We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1810 and resistance at $1842 per ounce. MCX Gold Aug support lies at Rs. 50200 and resistance at Rs. 50900 per 10 gram.
Bhavik Patel, Commodity/Currency Analyst, Tradebulls Securities
The US Fed took the most aggressive action since 1994 by raising the interest rate by 75 bps. Traders and speculators were expecting such aggressive rate hikes and that is why we did not see any huge reaction post rate hike. The Fed also anticipates that interest rates will continue to increase around 3.4% by the end of 2022 and 3.8% by end of 2023. Stocks and metals got a boost while USD retraced after US Fed said that after Fed’s neutral rate of 2.5%, they will go for 25bps instead of 50 and 75bps. Gold gained nearly $22 after the statement released from Fed and today also is expected to trade on the higher side. Market is also factoring another rate hike of 75 bps in July but after that the US Fed will raise rates by either 25 or 50 bps. We believe gold has bottomed out in the short term and would remain consolidated in the range of $1800-$1850 in COMEX while 49800-51500 in MCX.
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