Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate were trading weak in India on Monday, on the back of the strength in US Dollar. On Multi Commodity Exchange, gold October futures were trading low at Rs 49,425 per 10 gram. Silver December futures were ruling Rs 521 or 1 per cent down at Rs 55,712 per kg. Globally, yellow metal prices fell to a new 2-1/2-year low weighed down by a sturdy dollar and prospects of further interest rate hikes by the U.S. Federal Reserve to bring down inflation, according to Reuters. Spot gold was down 0.3% at $1,638.59 per ounce, after hitting its lowest level since April 2020 earlier in the session. U.S. gold futures fell 0.6% to $1,645.8.
Bhavik Patel, Commodity & Currency Analyst, Tradebulls Securities
Gold is trading at 2.5 year low in COMEX. The big news is GBP falling to an all time low after unveiling a mini budget on Friday. Indian rupee followed its peers and opened at fresh all time low giving some cushion to gold prices in MCX. Looks like this dollar rally is not peaking. The current market environment will likely remain unsettling. With the Dow touching the lowest level of the year on Friday and more volatility ahead, gold is unlikely to see a strong rally in the short term. $1600 is the new support and breach below that would push prices to $1540. The only positive note for gold is that these levels have attracted buyers. It makes physical gold cheaper but the issue is weak currency is not making gold cheaper to all countries as their currencies are also depreciating. 48950 is the support in MCX while 50175 is the resistance. Any dip near 48800 should be used as an entry point for a long position in gold.
Jigar Trivedi, Senior Analyst – Currency & Commodity, Reliance Securities
The yellow metal dropped to a new 2-1/2-year low, weighed down by a sturdy dollar and prospects of further interest rate hikes by the U.S. Fed’s to bring down inflation. Comex gold is now down by more than 20% from $2,000 an ounce it hit in March 2022. Holdings of SPDR Gold Trust, the world’s largest gold-backed ETF, fell 0.31% to 947.23 tonnes on Friday. Looking at the fundamental and technical set up, we may see further decline in the precious metals nonetheless, India celebrates Navratri from today onwards and buying gold during these days is considered an auspicious activity. Hence we do not deny possibilities of a rebound. For intraday, Rs. 49,800 per 10 gram is likely to level on the up side.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold prices fell to a new 2-1/2-year low, weighed down by a sturdy dollar and prospects of further interest rate hikes by the U.S. Federal Reserve to bring down inflation.The dollar index continues to make fresh 20 year highs, amidst a hawkish Fed. Atlanta Fed President Raphael Bostic said he still believes the U.S. central bank can tame inflation without substantial job losses given the economy’s continued momentum. There are a lot of updates regarding geo-political tensions between Russia-Ukraine, North and South Korea which has grabbed a few eyeballs although market participants are awaiting further clarity on the same. Spike in Dollar Index, Yields, interest rate do increase distress in the market, weighing on the safe haven assets. A downturn in business activity across the euro zone deepened in September, according to a survey which showed the economy was likely entering a recession as consumers rein in spending amid a cost of living crisis. This week will be important as market participants along with focusing on comments from officials of major central banks will also keep their eyes on U.S. GDP, Core PCE. Broader trend on COMEX could be in the range of $1620-1670 and on domestic front prices could hover in the range of Rs 49,000-49,675.
Pritam Patnaik,Head – Commodities, HNI and NRI Acquisitions, Axis Securities
Gold prices have breached, and continue to trade below the physiological level of $1650, largely because of a surging dollar index, which sits on a new high of 113.567 and an overtly hawkish outlook painted by the US Fed. The fact that central banks globally are ready to sacrifice growth to rein in inflation, have clearly paved the path for a higher interest rate regime, which doesn’t augur well for a non interest yielding gold prices. Adding to that, recession fears have further added to the safe haven appeal of the USD, propelling it higher. The pain will continue for gold in the short term.
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