Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate were trading weak on Wednesday, on the back of strong US Dollar. On Multi Commodity Exchange, gold October futures were trading Rs 99 or 0.2 per cent down at Rs 49,220 per 10 gram. Silver December futures were ruling Rs 581 or 1.05 per cent down at Rs 54,798 per kg. Globally, yellow metal prices slipped as the dollar resumed climbing after Federal Reserve officials reiterated the US central bank’s resolution to maintain an aggressive policy stance to tackle soaring inflation, according to Reuters. Spot gold was down 0.3% at $1,624.81 per ounce, U.S. gold futures dipped 0.2% to $1,632.4.
Jigar Trivedi, Senior Analyst – Currency & Commodity, Reliance Securities
MCX Gold October erased gains seen in early trade yesterday as the greenback continued to stay firm while upside remained limited in the precious metals complex. However, depreciation in rupee could continue to aid downside in domestic front MCX gold futures. The outlook is bearish. COMEX Gold has a strong support near $1,620 an ounce. Overall MCX Gold could continue to trade lower to Rs. 49,100 – 49,000 per 10 gm in October contract.
Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities
The US Treasury yield hit 4.00% yesterday which strengthened the US Dollar and weakened all asset classes including gold. Bearish sentiment in the gold market has reached a four-year high. Money managers have dropped their speculative long position and added fresh short positions. Gold’s net short positioning increased to 36,695, doubling from the previous week. We have seen six weeks of outflow from Gold ETF on account of strong dollar. Initially gold was able to withstand the hawkish Fed but continuous rallies in the US dollar have put gold on back foot. Investors should wait for some stabilization in the marketplace. There is now risk of short squeeze building up so any trader holding a short position should hold with strict stoploss. $1600 continues to be strong support and breach below that would break the prices till $1540. In MCX, weak rupee is helping gold and next support comes at 48800-48500.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
After a slight rebound earlier this week, both gold and silver prices witnessed some pressure as the Dollar Index gained momentum once again amidst hawkish speech from fed officials. Minneapolis Federal Reserve Bank President Neel Kashkari said U.S. central bankers are united in their determination to do what is needed to bring inflation down, and financial markets understand that. Meanwhile, Chicago Fed President Charles Evans said the central bank will need to raise interest rates to a range between 4.50% and 4.75%. Market participants are expecting the Fed to maintain its hawkish stance, raising expectations of further aggressive rate hikes. These expectations are supporting the move in Dollar Index and U.S. Yields which is currently trading ~114.40 and 3.9% respectively, weighing on the precious metals pack. New orders for U.S. manufactured capital goods increased more than expected in August, suggesting that businesses remained keen to invest in equipment despite higher interest rates, which could keep the economy on a moderate growth path. Focus today will be on the comments from the Fed and ECB Governor. Broader trend on COMEX could be in the range of $1610-1657 and on domestic front prices could hover in the range of Rs 48,850-49,550.
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