Gold Price Today, 6 July 2022: Gold gets costlier ahead of FOMC minutes, US Fed’s comments on recession eyed

Gold Rate Today, Gold Price in India on 6 July 2022: Gold prices were trading firm in India on Wednesday, as yellow metal prices gained globally

Gold Rate Today, Gold Price Today in India
Gold prices took a 2% knock down in yesterday’s day of trade, as the dollar index rose to a two decade high amidst rising recession concerns. Image: Reuters

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading firm in India on Wednesday, as yellow metal prices gained globally. On Multi Commodity Exchange, gold August futures were up Rs 74 at Rs 51,376 per 10 gram. Silver September futures were down Rs 110 or 0.2 per cent at Rs 56,755 per kg. Comex gold prices were ruling at seven and half month low. Globally, yellow metal prices gained, following a selloff in the previous session that pushed bullion to a seven-month low, after the dollar halted its rally, according to Reuters. Spot gold rose 0.4% to $1,770.71 per ounce, and U.S. gold futures firmed 0.3% to $1,768.80.

Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities

Gold market witnessed carnage along with other assets including energy and base metals on back of recession fears. US Dollar index rallied to 20 year high while EURO tumbled to 19 year low. Stocks also plunged on Tuesday, with the Dow falling 2.3% and the S&P 500 dropping 2%. Fears of an inevitable recession based upon rising interest rates have fueled not only dollar strength but also selling pressure in gold on top of that. Gold erased $35 and traded below $1800. At the time of this writing, gold is trading at $1770 breaching its support of $1780. All eyes are on the FOMC minutes from the June meeting, with markets looking for clues related to the upcoming rate hike path and any new recession comments from the Federal Reserve members. Gold has support around the $1760-$1735 but remains weak. Trend has shifted from neutral to negative now and we would expect gold to remain under pressure this week.

Tapan Patel, Senior analyst– commodities, HDFC Securities

Gold prices traded firm on Wednesday with spot gold prices at COMEX were trading 0.39% up near $1771 per ounce in the morning trade. MCX Gold August futures opened up near Rs. 51454 per 10 gram in line with recovery in COMEX gold prices. Gold prices pared some losses after falling to nine month lows on a stronger dollar. The dollar index rallied by 1.5% in the previous session to 106.5 lowering demand for the yellow metal. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1750 and resistance at $1785 per ounce. MCX Gold Aug futures support lies at Rs. 50950 and resistance at Rs. 51600 per 10 gram.

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

Gold prices took a 2% knock down in yesterday’s day of trade, as the dollar index rose to a two decade high amidst rising recession concerns, and probability of further COVID led lockdown in China. Growing fears of recession are no longer limited to the US alone, as the Germany, Italy and Bank of England also indicated a grim economic outlook. Ideally this should have upped the safe haven demand and added to gold prices, but for the last 5-7 years these flows have moved towards USD.  DXY rallied to the highest levels in 20 years leading to a sharp crash in gold prices. Today, the gold traders will closely track the recession updates from FOMC and the US ISM Services PMI for June for future direction.

Ravindra Rao, VP- Head Commodity Research at Kotak Securities

COMEX gold inched up to trade near $1770/oz after testing Dec. lows yesterday. Gold has come under severe selling pressure as correction in crude oil and other commodities has reduced its appeal as an inflation hedge. Also, the US dollar index’s rise to fresh 2002 shows that US currency is the preferred safe haven asset. ETF outflows also show that investors continue to exit the market. The sudden drop yesterday also shows positioning ahead of FOMC minutes which may reaffirm Fed’s tightening stance. Gold has fallen to fresh lows and market sentiment remains weak however yesterday’s sell-off was a little overstretched and we may see some recovery if there is no negative surprise from FOMC minutes.

(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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