Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading in the red on Monday as a result of negative global cues, while the silver rate is down 1.24%. On Multi Commodity Exchange, gold April futures were trading at Rs 55,307 per 10 grams, down Rs 125 or 0.23%. Silver March futures were trading lower by Rs 798 at Rs 63,734 per kg on MCX.
Globally, the yellow metal prices were flat and hovered near a two-month low on Monday, after strong U.S. economic data stoked fears that the Federal Reserve would implement more interest rate hikes to rein in inflation, according to Reuters. Spot gold was unchanged at $1,810.48 per ounce. U.S. gold futures were flat at $1,817.40.
Gold to remain volatile in today’s session
“Gold and silver extended their fall last week with the yellow metal prices slipping to nearly two month lows and silver falling to 3.5 month lows in the international markets. Gold and silver extended its fall after strong gains in the dollar index, which surged to two month highs and crossed the 105 mark. The U.S. 10-year bond yields also crossed 3.90% levels amid further aggressive interest rate hike expectations from the U.S. Fed. The U.S. Fed officials advocate for further 50 basis point rate hikes amid hotter than expected U.S. inflation and strong economic data. The U.S. PCE price index shows growth of 0.6% in January against a growth of 0.4% in December month.
We expect gold and silver to remain volatile in today’s session. Gold has support at $1798-1788 while resistance is at $1820-1832. Silver has support at $20.62-20.48, while resistance is at $21.10-21.22. In INR terms gold has support at Rs 55,170-54,940, while resistance is at Rs 55,660, 55,850. Silver has support at Rs 62,950-62,420, while resistance is at Rs 63,890–64,480.,” said Rahul Kalantri, VP Commodities, Mehta Equities.
Gold has been under selling pressure
“MCX Gold has been under selling pressure for the last few weeks after it broke the strong support zone of the 56,500 level. Prices are down by almost 2.5 percent in the last two weeks. Comex Gold drifted towards a yearly low as prices edged lower below the $1815 level. Better than-expected economic data print from the U.S. added worries of aggressive monetary tightening. On the other hand, the Dollar index reclaimed $105. Comex Gold prices are highly sensitive to Interest rate hikes and the Dollar index. In Comex Support is placed around the $1800 level and resistance is placed around $1840,” said Deveya Gaglani, Research Analyst – Commodities, Axis Securities.
Gold hovering around a two-month low
“Gold traded steady in early morning trade hovering around a two-month low, amid concerns over high U.S. inflation and a hawkish response from the Federal Reserve. Last week’s strong U.S. economic data weighed on the safe haven assets. Data last week showed consumer spending, which accounts for more than two-thirds of U.S. economic activity, shot up 1.8% last month – the largest increase since March 2021. U.S. growth data was reported weaker than expectations but failed to make any impact on metal prices. The personal consumption expenditures (PCE) price index, which measures how much consumers are paying for goods and services, increased 0.6% month on month, after rising 0.2% in December.
“The dollar hovered around a seven-week high, while 10-year Treasury yields were now eyeing a move past 4% level. U.S. Treasury Secy. Janet Yellen said that the data showing inflation jumped unexpectedly in January signals that the fight against inflation “is not a straight line” and more work is needed. This week will be important, as focus remains on U.S. consumer confidence data, India’s GDP and Fed officials’ speech. Broader trend on COMEX could be in the range of $1780-1830 and on domestic front prices could hover in the range of Rs 55,000-56,100,” said Manav Modi, Analyst, Commodities & Currencies, MOFSL.