Gold Price Today, 29 Jun 2022: MCX Gold falls on strong dollar, support at Rs 50500; all eyes on Fed statement

Gold Rate Today, Gold Price in India on 29 June 2022: Gold prices were trading lower in India on Wednesday, on the back of weak trends in the global markets.

Gold Rate Today, Gold Price Today in India
MCX Gold August support lies at Rs. 50500 and resistance at Rs. 51000 per 10 gram.

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading lower in India on Wednesday, on the back of  weak trends in the global markets. On Multi Commodity Exchange, MCX August futures were ruling at Rs 50,830 per 10 grams. Silver July futures were trading Rs 209 or 0.4 per cent down at Rs 59,530 per kg. Globally, yellow metal prices inched down in range-bound trading, as sustained strength in the dollar kept investors away from greenback-priced bullion, according to Reuters. Spot gold was down 0.1% at $1,818.74 per ounce and U.S. gold futures also eased 0.1% to $1,820.30.

Tapan Patel, Senior Analyst — Commodities, HDFC Securities

Gold prices traded steady on Wednesday with spot gold prices at COMEX were trading near $1822 per ounce in the morning trade. MCX Gold August futures opened lower near Rs. 50772 per 10 gram on rupee appreciation. The yellow metal is trading in a narrow trading range of $1820-$1840 on lack of fresh triggers. The traders and investors are weighing global growth worries and tighter monetary policy which has kept gold prices in “no-man’s land” territory. The stronger dollar has capped upside in gold prices on reiterated FED stance over larger rate hike. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1810 and resistance at $1840 per ounce. MCX Gold August support lies at Rs. 50500 and resistance at Rs. 51000 per 10 gram.

Pritam Patnaik, Head – Commodities, HNI and NRI Acquisitions, Axis Securities

Gold prices internationally remained under pressure, as a rising dollar capped any chances of an upside, despite softening of treasury yields. In our domestic markets, a depreciating rupee provided some support to gold prices, which helped MCX gold to close higher by Rs 221, up 0.44% for yesterday’s day of trade. US consumer confidence came in at a 16-month low in June, owing to the possible impact a high inflationary regime could have on economic growth, thereby greatly increasing the probability of a recession in the coming months. Today, all ears will be on the Fed chair’s statement. While he has already made the central Bank’s stance clear, the market will look for confirmation of the aggressive maneuvers proposed by Fed members to reign in inflation. If reconfirmed, gold prices could slide further. That said, a weak rupee will continue to support local gold prices.

Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities

Gold prices saw some pullback in COMEX due to strong USD while in MCX because of weak rupee, prices traded range bound. Gold for last month is stuck between aggressive Fed rate hike and fears of inflation. Today’s US GDP and tomorrow’s PCE data will provide a fresh trigger for gold. If US GDP comes lower than expected, we might see some hike in prices as the US Fed will have to scale their aggressive rate hike so as not to push the economy into recession while strong GDP will push gold prices down as the US Fed will continue to rate hike aggressively. So gold is caught between $1815-$1845 and investors are waiting for any breakout of this range to take any positional trade. Rising recession risk is preventing outright short positions for now, but we expect gold to revert to tracking real yields for the rest of 2022 which will be negative for gold if the US Fed keeps hiking rates aggressively.

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

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