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Gold Price Today, 5 May 2022: Gold prices jump over Rs 550 per 10 gram, support at Rs 50800; silver tops 63000

Gold Rate Today, Gold Price in India on 5 May 2022: Gold prices jumped over 1 per cent in India on Thursday, on the back of positive global trends.

Gold Rate Today, Gold Price Today in India
We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1890 and resistance at $1910 per ounce.

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices jumped over 1 per cent in India on Thursday, on the back of positive global trends. On Multi Commodity Exchange, gold June futures were ruling 1.12 per cent or Rs 567 higher at Rs 51,177, as against the previous close of Rs 50,610 per 10 gram. Silver July futures were trading at Rs 63,740 per kg, up Rs 1,626 or 2.7 per cent. In the global markets, spot gold was up 1.1 per cent at $1,901.56 per ounce, after rising to its highest since April 29 earlier in the session. US gold futures gained 1.8 per cent to $1,902, according to Reuters.

Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities

Gold and Silver jumped as Federal Reserve Chair Jerome Powell ruled out a 75-basis-point rate hike at upcoming meetings, contradicting market expectations for June. Gold is currently retesting the levels of $1900 and if we see poor economic data going forward, then it may move above $1938. The rally in gold was in response to Fed’s more accommodative comments. Now that we have seen a nearly $30 rally in gold, if gold manages to sustain above $1900, then we can see more upside till $1930. In MCX, we can find resistance around 51800 while solid support is at 50500.

Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services

Gold inched higher amidst a few factors including the rise in geo-political tensions between Russia- Ukraine and updates regarding U.S.-China tussle, Governor Powell’s concerns regarding inflation and as the Fed announced pace of balance sheet reduction lower than expectations. Fed in its May policy meeting announced its first half point rate hike since 2000, the Fed also announced 47.5bln per month of balance reduction in June, July and August, and the reduction would further increase to as much as $95bln per month in September. Market participants had factored in a 50bps rate hike although we’re expecting an aggressive stance w.r.t the balance sheet trimming, hence supporting the safe haven assets. On the data front, after a steep fall in private payroll data, focus is now on Non-farm payroll data scheduled today. Focus today will be on U.S. weekly jobless claims data and Boe policy meet. Broader trend on COMEX could be in the range of $1880-1940 and on domestic front prices could hover in the range of Rs 51,000- 51,650.

Tapan Patel, Senior analyst — Commodities, HDFC Securities

Gold prices traded higher on Thursday with spot gold prices at COMEX were trading 1% up above $1900 per ounce in the morning trade. MCX Gold June futures witnessed gap up opening trading near Rs. 51270 per 10 gram. Gold prices rallied post the US FOMC meeting as the dollar index retreated from five years highs. The US FED raises key interest rates by 50 bps which is in line with market expectations. However, the US FED chair declined possibilities of a larger rate hike which led to a fall in the dollar index. 

We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1890 and resistance at $1910 per ounce. MCX Gold June support lies at Rs. 50800 and resistance at Rs. 51500 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.)

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