scorecardresearch
Must Read
Rakesh Jhunjhunwala stock: Federal Bank shares may rally 13% soon; derivatives, quantitative outlook strong
RBI Monetary Policy preview: MPC may raise repo rate by 50 bps; may retain CPI, real GDP growth forecasts

Gold Price Today, 3 Aug 2022: Gold flat on rise in US Dollar, US Treasury yields; MCX gold support at Rs 51100

Gold Rate Today, Gold Price in India on 3 August 2022: Gold prices in India were trading flat with a negative bias on Wednesday, on the back of weak global cues.

Gold Rate Today, Gold Price Today in India
Gold’s rally came to a screeching halt after hawkish statements from two Fed officials, sending gold tumbling from its day high to the day's low.

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading flat with a negative bias on Wednesday, on the back of weak global cues. On Multi Commodity Exchange, gold October futures were ruling Rs 16 or 0.03 per cent down at Rs 51,366 per 10 gram. Silver September futures were trading Rs 104 or 0.2 per cent down at Rs 57,482 per kg. Globally, yellow metal slipped as the dollar and U.S. Treasury yields advanced after hawkish comments from Federal Reserve officials hinted at continuing aggressive interest rate hikes in the near term, according to Reuters. Spot gold was down 0.2% at $1,757.08 per ounce, after hitting a near one-month high of $1,787.79 on Tuesday. U.S. gold futures dropped 0.9% to $1,772.80 per ounce.

Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities

Gold was on its merry way to $1800 but US house speaker Nancy Pelosi’s visit to Taiwan increased geopolitical tension which made US Dollar jump and investors dumping riskier assets including gold. US Fed’s officials also signaled that Fed is still intent on raising rates to keep inflation under control which also checked prices in gold and helped investors pile on US Dollar. US Treasury yield jumped by 18 bps, biggest intraday rise in 5 years due to Sino-US tension. Based on rising yields, Gold will face headwinds but the trend still is bullish. Any dip below $1700 will change the trend to bearish. Intraday again we recommend buy near 51200 for expected target of 51500 and stoploss of 51000.

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

Gold’s rally came to a screeching halt after hawkish statements from two Fed officials, sending gold tumbling from its day high to the day’s low. With the armed confrontation risk between China and Taiwan increasing, gold prices moved above $1800, albeit briefly. Later in the day, the risk of further aggressive interest rate hikes to counter runaway inflation re-emerged, when two separate Fed officials stated that a lot more needs to be done to reign in runaway inflation, indicating that additional rate hikes were very much on the cards. This sent the dollar index and bond yields into recovery mode, thereby lowering the gold prices.

Tapan Patel, Senior Analyst — Commodities, HDFC Securities

Gold prices traded steady on Wednesday with spot gold prices at COMEX were trading 0.38% up near $1768 per ounce in the morning trade. MCX Gold October futures opened firm near Rs.51367 per 10 gram in line with strong global prices. Gold prices pared some gains on dollar recovery and rise in US bond yields as some FED officials signalled steeper rate hikes in coming months. The 10 year US Treasury yields rose to 2.74% while the dollar index was above 106 lowering demand for the yellow metal. We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1750 and resistance at $1785 per ounce. MCX Gold October support lies at Rs. 51100 and resistance at Rs. 51700 per 10 gram.

(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.)

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Most Read In Commodities