MCX Gold to hover in Rs 50500-51450, may trade sideways to up today; interest rate hike negative for gold

Gold Rate Today, Gold Price in India on 8 June 2022: Gold and silver prices fell in India on Wednesday on the back of weak global cues

Gold Rate Today, Gold Price Today in India
old and silver prices fell in India on Wednesday on the back of weak global cues.

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold and silver prices fell in India on Wednesday on the back of weak global cues. On Multi Commodity Exchange, gold August futures were ruling Rs 88 or 0.2 per cent down at Rs 50,880 per 10 grams, as against the previous close of Rs Rs 50,968. Silver July futures were trading at Rs 62,005 per kg, down Rs 238 or 0.4 per cent on MCX. Globally, yellow metal prices edged lower as an uptick in the dollar and Treasury yields limited bullion’s appeal, with investors looking ahead to U.S. inflation data for more direction on interest rates, according to Reuters. Spot gold was down 0.2% at $1,848.75 per ounce, while U.S. gold futures were flat at $1,851.20. 

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

Gold prices traded steady near $1850 mark amidst volatility in U.S. Yields and Dollar, as investors awaited the U.S. inflation report this week for further cues on the economy as central banks worldwide take measures to calm the inflationary pressure. After a  positive jobs number last week market participants are anticipating, fed to stay on an aggressive path w.r.t interest rate although it will be important to see the Inflation number scheduled later this week to get an understanding regarding health of the economy and central banks further stance. Focus today will be on the RBI policy meeting which could trigger further move in the domestic currency. Today, EU growth numbers are also lined up on the economic calendar. Broader trend on COMEX could be in the range of $1830- 1870 and on domestic front prices could hover in the range of Rs 50,500- 51,450

Tapan Patel, Senior Analyst — Commodities, HDFC Securities

Gold prices traded steady on Wednesday with spot gold prices at COMEX were trading near $1848 per ounce in the morning trade. MCX Gold Aug futures opened marginal down near Rs. 50900 per 10 gram. Gold prices kept firm trading range with pull back in US bond yields and inflation data speculation. Gold prices may keep volatile trading ahead of the US FOMC meet next week where a 50 bps rate hike is already expected. We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1840 and resistance at $1860 per ounce. MCX Gold Aug support lies at Rs. 50700 and resistance at Rs. 51200 per 10 gram.

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

All gold traders are awaiting the Gold U.S. inflation report, due this week for establishing any clear trade in the metal. Currently, the metal has been in a range bound trade pattern. U.S. Treasury Secretary Janet Yellen told senators on Tuesday that she expected inflation to remain high and the Biden administration would likely increase the 4.7% inflation forecast for this year in its budget proposal. While a higher inflationary set up supports gold prices, an aggressive interest rate hike by all central banks is negative for the non-interest yielding asset like gold. Expect range bound trade to continue.

Jigar Trivedi, Manager — Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers

Gold may appreciate amid warnings of slowing global economic growth. A surge in inflation bolsters appeal as a traditional safe haven. The World Bank cut its forecast for global economic expansion in 2022 further, warning that several years of above-average inflation and below-average growth lie ahead with potentially destabilizing consequences for low- and middle-income economies.

(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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