Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading lower on Tuesday, as yellow metal subdued globally on strength in the US Dollar. On Multi Commodity Exchange, gold August futures were ruling at Rs 50,269 per 10 gram, down Rs 92 or 0.2 per cent. Silver September futures were trading Rs 560 or 1 per cent down at Rs 55,532 per kg. Globally, yellow metal edged lower as an uptick in the U.S. dollar and bond yields weighed on bullion’s appeal, with investors awaiting more cues on the Federal Reserve’s rate-hike path, according to Reuters. Spot gold was down 0.2% to $1,706.25 per ounce. U.S. gold futures fell 0.3% to $1,705.30.
Pritam Patnaik, Head – Commodities, HNI & NRI Acquisitions, Axis Securities
A trifecta impact of impending US interest rate hike of 0.75% to 1%, strong USD, and higher bond yields have sapped any potential positivity from gold bulls. Yesterday’s brief-up move in gold was aggressively sold into, showing the lack of confidence the asset class enjoys amongst traders and investors. It’s a given fact that gold is technically in oversold territory, but with the upcoming US Fed rate decision in the coming days, no traders are willing to stick their necks out. Money managers and retail investors seem to be reducing their longs, with both the CFTC data and SPDR gold fund indicating unwinding of longs and fund outflow. Expect the market to continue to be sideways to negative.
Tapan Patel, Senior Analyst — Commodities, HDFC Securities
Gold prices traded steady on Tuesday with spot gold prices at COMEX were trading flat near $1708 per ounce in the morning trade. MCX Gold August futures opened marginal down near Rs. 50300 per 10 gram following global cues. Gold prices are stuck in the narrow range over FED dilemma on rate hikes after another record inflation numbers. The dollar index and US bond yields were slightly up on Tuesday adding some pressure on gold prices. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1700 and resistance at $1720 per ounce. MCX Gold August futures support lies at Rs. 50100 and resistance at Rs. 50700 per 10 gram.
Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities
After bouncing to $1724, gold again became weak trading at $1708 at the time of writing as the US Dollar continued to trade higher. Despite gold being in oversold territory, bounce seems to be weak as the market is waiting for the FED rate hike next week. Open interest in COMEX gold has been cut by around 6% (3 million oz) which is a large sum indicating that investors are concerned about real rates which continue to increase. For the first time since May 2019, gold’s speculative positioning has turned net short by 6,133 contracts. Market is predicting that the Fed’s aggressive stance could push the U.S. into a recession, creating enough demand destruction in commodity markets to cool red-hot inflation pressures. We expect prices to trade weak today owing to the strong US dollar and bearish sentiment. Support for the market comes at 49800-49500 while resistance is around 50650.
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