Gold Price Today, Gold Price Outlook, Gold Price Forecast: MCX Gold prices gained on Friday, while silver rates surged 0.51%. On the Multi Commodity Exchange, gold October futures were trading at Rs 58,375 per 10 grams, up by Rs 85 or 0.15%. Silver September futures were trading up by Rs 357 at Rs 70,375 per kg on the MCX.
Gold edged up from 5-month lows on Friday as the US dollar and bond yields slightly retreated from highs, but bullion was set for its fourth consecutive weekly decline on concerns the Federal Reserve would keep interest rates higher for longer, according to Reuters. Spot gold gained 0.2% to $1,892.02 per ounce, after touching its lowest since mid-March on Thursday. US gold futures rose 0.4% to $1,921.90.
Gold to remain volatile
“Gold and silver once again witnessed high volatility on the back of rising US treasury yields which reached its highest level in 10 months, underpinned by fears that interest rates might stay higher for longer, while China’s economic woes also contributed to the weakness in metal prices. Potentially driving the Dollar higher could be the deterioration in the Chinese Yuan. The recent data on Treasury holdings revealed that China has sold every month this year, except for March. The in-line US economic data is not providing much direction for gold prices. However, upbeat European trade balance data supported silver prices at lower levels and silver prices crossed $22.50 per troy ounce level once again,” said Rahul Kalantri, VP Commodities, Mehta Equities.
“We expect gold rate and silver to remain volatile in today’s session. Gold has support at $1880-1866 while resistance is at $1905-1914. Silver has support at $22.64-22.50, while resistance is at $23.00-23.22 In INR terms gold has support at Rs 58,070 – 57,880, while resistance is at Rs 58,510 – 59,740. Silver has support at Rs 69,510 – 69,020, while resistance is at Rs 70,740 – 71,340,” Rahul Kalantri added.
Gold to face headwind from elevated Dollar index, hawkish Fed stance
“COMEX Gold price is headed for its fourth consecutive week of declines as a robust US jobs report reinforced speculation that the Federal Reserve is not done with the rate hikes yet. Data released yesterday showed that applications for unemployment benefits in the US eased to 239k and the figures signaled a historically strong Labour market, bolstering Federal Reserve hawks who see the need for further tightening. Spot gold prices still remain below $1,900 per troy ounce as bond yields continue to rise globally, with the 10-year Treasury yield approaching the highest level since 2007. Prospects of higher rates, elevated dollar index and hawkish Fed stance might continue to act as a short-term headwind for gold prices,” said Ravindra Rao, CMT, EPAT, VP – Head Commodity Research, Kotak Securities.