Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading in the green on Thursday, while the silver rate is up 1.18%. On Multi Commodity Exchange, gold June futures were trading at Rs 61,421 per 10 grams, up Rs 465 or 0.75%. Silver May futures were trading higher by Rs 908 at Rs 77,450 per kg on MCX.
Globally, the yellow metal traded near record-high levels on Thursday, as U.S. yields and the dollar dipped after the U.S. Federal Reserve hinted it may pause its rate-hike cycle. Spot gold was up 0.1% at $2,040.46 per ounce and earlier in the session, prices rose to $2,072.19 per ounce and hovered close to an all-time high of $2,072.49 scaled in 2020. U.S. gold futures rose 0.6% at $2,050.10.
Gold prices higher on safe-haven buying
“Gold price edged higher with spot gold at Comex was trading up by 0.10% at $2040 per ounce in the morning trade. Comex spot gold price surged to an all time high of $2085.40 per ounce post FOMC interest rate decision. The Federal Reserve signaled a pause in policy tightening from the next meeting after hiking the benchmark interest rate by 25 basis point. Additionally, US Dollar and bond yields dropped after the U.S. Federal Reserve opened the door to a pause in its aggressive tightening cycle, though markets were buffeted by risk aversion amid a rout in regional U.S. bank shares.
“We expect gold price to fluctuate within the upper range with positive bias after hitting an all time high in the previous session. Comex spot gold should trade within the range of $2033 to $2085 per ounce. Comex spot gold having support at $2033/$2019 per ounce and resistance at $2070/$2085 per ounce. MCX Gold June future having supports at Rs 60,700/60,570 per 10 gram and resistances at Rs 61,400/61,750 per 10 grams,” said Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities.
Gold prices rise as yields, dollar falls
“Gold prices and silver price traded near record-high levels on Thursday, as U.S. yields and dollar dipped after the U.S. Federal Reserve hinted it may pause the rate-hike cycle. The Fed raised its benchmark overnight interest rate by 25 basis points, but no longer said that it “anticipates” further rate increases would be needed, only that it will watch incoming data to determine if more hikes “may be appropriate.” Fed Chair Jerome Powell said the U.S. had a greater chance of avoiding a recession, but would not rule it out, adding: “it’s possible that we will have what I hope would be a mild recession.”
“Share prices of US regional banks continue to inch lower. Concerns in the banking space remain unresolved, that will put a cautious stance in the risk environment, drawing continued safe-haven flows for gold in the event of further fallouts. U.S. private payroll data was reported better than expectations signaling a tighter labor market, while US service PMI data was in-line with expectations. Today’s focus will be on the ECB policy statement where they are expected to raise interest rates for the seventh meeting in a row,” said Manav Modi, MOFSL.