Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading in the green on Thursday as a result of positive global cues for the metal, while the silver rate is up 0.74%. On Multi Commodity Exchange, gold April futures were trading at Rs 59,180 per 10 grams, up Rs 424 or 0.72%. Silver May futures were trading higher by Rs 515 at Rs 69,824 per kg on MCX.
Globally, the yellow metal prices gained as the U.S. Federal Reserve signaled that it was nearing the peak in its rate hike cycle after raising the rates by 25 bps. This makes the yellow metal more attractive for investors as interest rates remain lower. Spot gold was up 0.4% at $1,976.98 per ounce. U.S. gold futures gained 1.6% to $1,979.90.
Gold to remain highly volatile in trade
“Gold and silver prices climbed on Wednesday after the U.S. Federal Reserve toned down its aggressive approach to rein in inflation in a widely anticipated policy statement, and indicated that an end to interest rate hikes was on the horizon. The dollar index slipped to seven week lows after the Fed meeting outcome and the U.S. 10-year bond yields also slipped below 3.50% once again that led to safe-haven demand for precious metals. On the other hand in the press conference that followed, Fed Chair Jerome Powell said the central bank was not expecting to cut rates in 2023. The Fed is having to balance inflation risks and economic stability, both are factors that could drive further safe-haven demand for precious metals.
“We expect gold and silver to remain highly volatile in today’s session. Gold has support at $1955-1942 while resistance is at $1986-1998. Silver has support at $22.62-22.50, while resistance is at $22.91-23.15. In INR terms gold has support at Rs 58,480-58,250, while resistance is at Rs 58,940-59,150. Silver has support at Rs 68,620-68,050, while resistance is at Rs 69,690–70,180,” said Rahul Kalantri, VP Commodities, Mehta Equities.
Gold prices could trade with positive momentum
“COMEX Gold prices rose on Wednesday, after the FOMC meeting, as Fed chair Jerome Powell acknowledged that we are near peak rates. The Federal Reserve hiked the fed funds target rate range by 25 basis points to 4.75-5% as largely expected by the markets. The dot plot chart showed that the end-2023 fed funds median forecast is 5.1%, which is the same as the December projection, whereas most economists were expecting Fed to raise it to 5.375%. Latest dot plots suggest that the Fed may hike by another 25 bps in the May meeting and then go for a pause. Fed Chair Powell also said that policy makers considered a pause in their interest-rate hiking campaign in light of the banking turmoil, but the consensus for an increase was strong. Despite Powell reiterating for holding rates throughout the year, markets are expecting a cut of more than 75 bps in 2023.
“Meanwhile, U.S. Treasury Secretary Janet Yellen during a hearing before a Senate sub-committee said that regulators aren’t looking to provide “blanket” deposit insurance to stabilize the U.S. banking system without working with lawmakers, and that the heads of recently failed American lender should be held accountable, putting the focus back on the weak regional banks. With prospects of nearing an end to the fastest rate hike in decades coupled with a looming recession and Yellen’s comments, we might see gold prices trading with a positive momentum” said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities.