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Gold Price Today, 6 May 2022: Gold to remain in Rs 50500-51500 range for few days; buy the dips

Gold Rate Today, Gold Price in India on 6 May 2022: Gold prices in India were trading flat with a positive bias on Friday, mirroring global cues

gold, silver
Gold prices traded lower on Friday with spot gold prices at COMEX were trading near $1875 per ounce. Image: Reuters

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading flat with a positive bias on Friday, mirroring global cues. On Multi Commodity Exchange, gold June futures were ruling at Rs 50,928 per  10 grams, up Rs 29, as against the previous close of Rs 50,899. Silver July futures were trading in red at Rs 62,322 per kg on MCX. Globally, yellow metal prices edged lower and looked set to fall for a third straight week, weighed down by a robust dollar and rising yields, while investors await the U.S. jobs report to assess its impact on monetary policy, according to Reuters. Spot gold fell 0.4% to $1,869.26 per ounce, while U.S. gold futures slipped 0.4% to $1,869.10. Bullion has declined about 1.5% so far this week.

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

Gold prices fell, giving up some gains from a more than 1% rise, amid the rise in U.S. Yields and Dollar. The dollar index gained 1.3%, towards 103.90 levels, boosted by safe haven inflows driven by a retreat in Wall Street, while the yield on 10-year Treasury notes rose over 3%. The Fed  raised its benchmark overnight interest rate by 50bps, the biggest jump in 22 years, while Chair Jerome Powell added the bank was not considering a 75bps move in the future. Any signs of a recovering economy reduces demand for safe-haven metal. Hence, after a fall witnessed in U.S. private payroll numbers, focus for today will be on the Non-farm payroll and unemployment data from the U.S. to gauge further direction for the metals. Broader trend on COMEX could be in the range of $1860-1910 and on domestic front prices could hover in the range of Rs 50650-51250.

Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities

After some initial exuberance by the marketplace that the Fed was becoming less hawkish on U.S. monetary policy, traders and investors came to their senses and realized nothing has changed which is why we have seen equity markets and bullions crashing down after strong up move. Traders and investors are now awaiting Friday’s U.S. employment situation report for April. Strong US dollar and bond yields still are headwinds for the gold market and we believe gold will remain confined in the range of 50500-51500 for the next couple of days. Any dips near 50500 could be bought with stoploss of 50000 and target of upper range i.e. 51500.

Tapan Patel, Senior Analyst — Commodities, HDFC Securities

Gold prices traded lower on Friday with spot gold prices at COMEX were trading near $1875 per ounce in the morning trade. MCX Gold June futures opened near Rs. 50936 per 10 gram limiting downside on rupee depreciation. Gold prices pared gains falling to $1870 per ounce on a stronger dollar and a rally in US bond yields. The 10 year US Treasury yields rose above 3% on Thursday overnight. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1850 and resistance at $1890 per ounce. MCX Gold June support lies at Rs. 50500 per gram and resistance at Rs. 51200 per 10 gram.

Ravi Singh, Vice President & Head of Research, Share India Securities

Gold prices are rising a bid on weaker equities and geopolitical tensions, facing headwinds from the rate hike from Fed. On technical setup, gold is showing strength in volume terms and may be in up trend next week.

Buy Zone Near – 50700 for the target of 51000

Sell Zone Below – 50650 for the target of 50350

(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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