Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading flat to negative in India on Wednesday, as yellow metal prices remained steady. On Multi Commodity Exchange, gold August futures were ruling Rs 55 or 0.11 per cent down at Rs 50,265 per 10 gram. Silver September futures were ruling Rs 81 or 0.2 per cent lower at Rs 55,646 per kg. Gold steadied on Wednesday as a pullback in the U.S. dollar balanced pressure from rising bond yields, with investors awaiting key interest rate hike decisions from major central banks, which could present a clearer outlook for bullion, according to Reuters. Spot gold was little changed at $1,711.36 per ounce. US gold futures fell 0.1% to $1,709.20.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold continues to trade steady above $1700 mark, amidst a pullback witnessed in the U.S. dollar balanced pressure from rising bond yields, with investors awaiting key interest rate hike decisions from major central banks, which could present clarity regarding further direction for bullions. The dollar dipped for a fourth straight session, prices went from around 109 to below 107 level in these past few sessions. Whereas, Benchmark U.S. 10-year treasury yields rose, staying above the 3% mark. As market participants are focusing on the Fed’s interest rate trajectory ahead, we also received an update that the ECB policymakers might raise the interest rate by 50bps. On the other hand, as we talk about G7 countries levying sanctions on Russian gold, we witnessed that Switzerland imported 284 kg of gold worth around $16 million from Russia in June. Economic calendar from the U.S. is muted although focus this week will be on the preliminary Manufacturing and Service PMI data from major economies. Broader trend on COMEX could be in the range of $1680-1730 and on domestic front prices could hover in the range of Rs 50,000- 50,700.
Bhavik Patel, Commodity/Currency Analyst, Tradebulls Securities
Gold market is witnessing selling pressure despite the weak US Dollar. From $108.60, USD has tumbled to $106.50 in the last 3 trading sessions yet gold prices failed to sustain at higher levels and is languishing around $1711 at the time of writing. One of the reasons for gold bulls not to participate is next week’s upcoming rate hike from the US Fed. We have already seen hedge funds becoming net sellers for the first time in 3 years and so there is a dearth of long positions to take gold prices higher. Inflows are going into US Treasuries in lieu of rate hike expectation which is leaving gold prices high and dry. We believe gold will trade in the range of $1700-$1745 this week with bearish bias. In MCX, gold prices may get support from weak Rupee which is making daily fresh all-time low. Support in MCX comes at 49950 while resistance is at 50700.
Tapan Patel, Senior Analyst Commodities, HDFC Securities
Gold prices traded steady on Wednesday with spot gold prices at COMEX were trading marginal up near $1713 per ounce keeping narrow trading range. MCX Gold August futures traded higher in the opening trade near Rs. 50357 per 10 gram in line with firm COMEX prices. Gold prices capped upside despite a weaker dollar on strong equity indices. The US FED rate hike speculation and lack of economic data may keep yellow metal in range for the short term with downward bias. 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 support lies at Rs. 50100 and resistance at Rs. 50600 per 10 gram.
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