Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading lower on Thursday as a result of negative global cues, while the silver rate is down 0.23%. On Multi Commodity Exchange, gold April futures were trading at Rs 54,835 per 10 grams, down Rs 76 or 0.14%. Silver May futures were trading lower by Rs 145 at Rs 61,672 per kg on MCX.
Globally, the yellow metal prices traded in a tight range on Thursday as some investors stayed on the sidelines ahead of U.S. jobs data that could influence the Federal Reserve’s monetary policy path, according to Reuters. Spot gold was little changed at $1,813.39 per ounce, trading in a $5 range, after hitting its lowest since Feb. 28 on Wednesday. U.S. gold futures eased 0.1% to $1,816.70.
Negative momentum to persist in gold prices
“COMEX Gold futures further eased on Wednesday and held near the lowest since the start of the year, on prospects of higher rates in the U.S. Fed Chair Jerome Powell said in testimony in Washington this week the central bank was “prepared to increase the pace of rate hikes” should data including employment, job openings, consumer prices and producer prices come in hot. The comments boosted the greenback and U.S. two-year treasury yields are trading above 5%, at 15-year highs, dampening the demand for the non-yielding yellow metal.
“Markets are now expecting the Fed to hike rates by 50 basis points in the March FOMC meeting, if tomorrow’s Labour data and next week’s CPI comes in hot. US ADP employment data showed that private businesses in the U.S. unexpectedly created 242K jobs in February 2023, well above an upwardly revised 119K in January and market forecasts of 200K, boosting expectations for NFP due tomorrow. We expect the negative momentum to persist in gold prices,” said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.
Gold prices trading steady following a sharp decline
“Gold traded steady after a sharp fall in earlier sessions, following U.S. Federal Reserve Chair Jerome Powell’s hawkish remarks supported an up-move in Dollar index and US Yields. Fed Chair Powell on Wednesday reaffirmed his message of higher and potentially faster interest rate hikes, but emphasized that debate was still underway with a decision hinging on data to be issued before the U.S. central bank’s policy meeting in two weeks. Fed Governor Powell warned that recent signs of resilience in inflation and the jobs market were likely to push interest rates higher than market expectations.
“On the data front, EU GDP was reported lower than expectations while private employment increased by 2,42,000 jobs last month. However, a drop in job openings pointing to a persistently tight labour market. Market participants are now pricing in almost 70% probability for a 50 bps rate hike in March Fed meet. Focus now shifts to US non-farm payroll data scheduled tomorrow, which if reported better than expectations could further weigh on safe haven assets. Broader trend on COMEX could be in the range of $1790-1835 and on domestic front prices could hover in the range of Rs 54,500-55,200,” said Manav Modi, MOFSL.