Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading lower in India on Tuesday, following the global cues. On Multi Commodity Exchange, gold October futures were ruling 1.07 per cent or Rs 562 lower at Rs 52,023 per 10 gram as against the previous close of Rs 52,585. Silver September futures were trading Rs 1,266 or 2.14 per cent lower at Rs 58010 per kg. Globally, gold prices inched lower after falling more than 1% in the previous session, weighed down by an uptick in the U.S. dollar and worries over further U.S. interest rate hikes, according to Reuters. Spot gold was down 0.1% at $1,777.46 per ounce, after hitting its lowest since Aug. 8 at $1,772.30 on Monday. U.S. gold futures eased 0.2% to $1,793.90 per ounce.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold fell over 1% to its lowest in a week amid sharp declines across commodities due to a stronger dollar, with concerns over further rate hikes by the U.S. Federal Reserve adding to pressure on bullion. Dollar index is again trading above the 106 zone, whereas U.S. 10 Year yield is also gaining some momentum. U.S. consumer prices did not rise in July lifting hopes that the Fed would be less aggressive on its tightening plans. Although, we also witnessed a positive job market scenario at start of the month and Fed officials also in their comments have maintained a hawkish tone and hinted at more rate hikes down the year to tame high inflation. Industrial output in China, the world’s top consumer of gold, expanded at 3.8% in July from a year. Investors await minutes from the Fed’s July meeting on Wednesday for cues on the likely magnitude of rate hikes in the coming months. Market participants today will keep an eye on the U.S. housing numbers and industrial production data. Broader trend on COMEX could be in the range of $1775- 1810 and on domestic front prices could hover in the range of Rs 51,650- 52,550.
Bhavik Patel Commodity/Currency analyst Tradebulls Securities
Gold breached $1800 yesterday after a combination of strength in the US dollar and traders selling the future of Gold in COMEX. With last month’s FOMC meeting minutes set to be released on Wednesday traders are cautious and waiting to see if any new insights can be gleaned from the FOMC meeting minutes. One of the reasons for gold not pushing above $1800 is money manager’s reluctance to initiate fresh long positions. Given the strong message coming from Fed officials that it will take time to bring inflation under control, it seems money managers are unwilling to take any long positions which are needed to support a sustained price rally. Today with the Indian currency market closed, MCX gold will follow COMEX gold prices closely today. Today gold is expected to trade sideways to bearish today with support at 51800 and resistance at 52300.
Jigar Trivedi, Senior Analyst -Currency & Commodity, Reliance Securities
Comex Gold witnessed the biggest drop in a month yesterday as investors rushed to the dollar amid growing signs of an economic slowdown. The yellow metal has taken a fresh leg down after rising for four weeks as the greenback advanced. The latest US data showed rapidly cooling manufacturing added to concerns over the risks to global growth following weak figures from China. MCX Gold September may decline to Rs. 51,800 per 10 gram as the dollar has continued to appreciate.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
COMEX gold trades mixed near $1795/oz after yesterday’s 1% decline. Weighing on gold price is rebound in US dollar, continuing ETF outflows and concerns about consumer demand in India and China. The US dollar index has bounced back on safe haven buying and positioning ahead of FOMC minutes. Gold rallied sharply in last few days but seems to be losing momentum near $1800/oz level and we may see some correction if Fed maintains a hawkish stance.
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