Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading flat on Wednesday despite negative global cues, while the silver rate is down 0.32%. On Multi Commodity Exchange, gold April futures were trading at Rs 56,161 per 10 grams, down Rs 7 or 0.01%. Silver March futures were trading lower by Rs 212 at Rs 65,566 per kg on MCX.
Globally, the yellow metal prices rose marginally on Wednesday, as investors awaited minutes of the U.S. Federal Reserve’s latest policy meeting to assess prospects of further interest rate hikes, according to Reuters. Spot gold was up 0.1% at $1,835.40 per ounce. U.S. gold futures firmed 0.1% to $1,845.10.
Gold prices could hover in the range of Rs 55,820-56,500 on MCX
“Gold inched higher amidst a slight ease off in dollar index and as investors awaited the minutes of the U.S. Federal Reserve’s latest policy meeting that could offer clues on further interest rate hikes. Dollar index fell from ~104.60 to 104 mark; while U.S. yields hit their highest since November last year. U.S. business activity unexpectedly rebounded in February, reaching its highest level in eight months. U.S. PMI data was reported at 50 which was slightly above estimates. Any signs of resilience in the U.S. economy give the Fed more space to keep hiking rates, which the bank has signaled that it intends to do for the near-term.
“However there are also concerns about a slowdown in global growth which was alarmed by housing numbers which showed some pressure. Market participants’ focus this week will be on the FOMC meeting minutes, U.S. GDP and Core PCE data. Broader trend on COMEX could be in the range of $1820-1860 and on domestic front prices could hover in the range of Rs 55,820-56,500,” said Manav Modi, MOFSL.
Upside potential for gold appears to be limited
“Gold prices on Tuesday slipped lower, as it lost 0.37 percent and concluded at 1834.3 per ounce. The U.S. Federal Reserve’s most recent policy meeting’s minutes, which may provide information about future interest rate increases, are eagerly expected by investors. The market anticipates the U.S. central bank to keep interest rates above 5% throughout the year. The U.S. central bank increased rates by 25 basis points in its recent meeting.
“U.S. business activity unexpectedly rebounded in February, reaching its highest level in eight months, according to a survey on Tuesday, which also showed inflation subsiding. Given the dollar’s continued strength and the likelihood that the U.S. Fed will continue raising interest rates, the upside potential for the yellow metal appears to be limited,” said Prathamesh Mallya, Angel One