Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India tanked more than half a per cent on Thursday as the yellow metal hit a one-year low globally. On Multi Commodity Exchange, gold August futures were ruling Rs 265 or 0.53 per cent down at Rs 49,960 per 10 gram, nearly 3-month low level. Silver September futures were trading Rs 506 or 0.9 per cent down at Rs 55,113 per kg. Globally, yellow metal prices fell to their lowest in nearly a year, as an elevated U.S. dollar and prospects of more interest rate hikes by major central banks to combat soaring inflation weighed on bullion’s appeal, according to Reuters. Spot gold was down 0.2% at $1,693.90 per ounce, after falling to its lowest since early August 2021 at $1,691.40 in early Asian trade.
Ravindra Rao, VP- Head Commodity Research, Kotak Securities
COMEX gold trades near Aug.2021 lows weighed down by a pause in US dollar ahead of the ECB decision today. Also weighing on price is stability in equity markets, concerns about consumer demand in India and China and continuing ETF outflows. Gold stalled near $1700/oz level for the last few days despite weakness in the US dollar which showed lack of confidence that US currency may weaken significantly. Gold may remain under pressure unless we see renewed selling pressure in the US dollar post ECB decision. ECB is largely expected to raise interest rate by 0.25% however there are some expectations of a bigger move as well.
Tapan Patel, Senior Analyst — Commodities, HDFC Securities
Gold prices traded lower on Thursday with spot gold prices at COMEX were trading 0.27% down near $1692 per ounce in the morning trade. MCX Gold August futures were trading 0.49% down falling below Rs 50000 per 10 gram in the opening trade. Gold prices witnessed selling in the previous session on a strong dollar and rally in equity indices. The growing speculation over the US FED rate hike may keep gold prices under check for the short term. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1685 per ounce and resistance at $1710 per ounce. MCX Gold August support lies at Rs. 49800 and resistance at Rs. 50500 per 10 gram.
Pritam Patnaik, Head – Commodities, HNI & NRI Acquisitions, Axis Securities
Gold prices have come under renewed attack as the dollar index tries to retest its recent highs. The investors seem to be nervous about the deluge of impending rate hikes across all major economies, possibly starting with the ECB today, BOE, and finally the US Fed, as they endeavor to reign in runaway inflation, which has been beating historic levels. The gold bulls will have to wait for some more time to start value buying. Prices will remain soft to negative, as all rallies will be possibly sold into.
Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities
COMEX gold hit 11 month low at $1691 as USD witnessed incremental price gain. However the selloff in gold is not a factor of US Dollar strength. If we look at gold’s price action since last Thursday, prices have dipped till $1700 before bouncing weakly while USD was falling steadily since last Thursday. Gold prices would have been much lower if USD would have been stronger but despite weakness in USD, gold prices continue to decline steadily. This shows that gold prices were declining on rate hike expectations from the Fed next week. Yesterday’s breach below $1700 can be attributed to some rally in USD but as we have talked earlier, hedge funds have become net sellers for the first time in three years indicating shifting sentiment. We expect prices to remain weak until FOMC’s rate hike next week. In MCX, support for gold is at 49500 while resistance is at 50500. Bottom fishing should be avoided in gold for now and wait for prices to make bottom before taking any long positional call.
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