Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading weak in India on Wednesday, in line with a fall in global markets. On Multi Commodity Exchange, gold August futures were trading Rs 150 or 0.3 per cent down at Rs 50,610 per 10 gram, as against the previous close of Rs 50,760. Silver July futures were ruling at Rs 60,480 per kg, down Rs 791 or 1.3 per cent on MCX. Globally, yellow metal prices eased as the dollar and Treasury yields firmed, but prices were range-bound as investors awaited fresh cues on top central banks’ monetary policy plans, especially from the U.S. Federal Reserve, according to Reuters. Spot gold fell 0.3% to $1,827.69 per ounce, extending losses to a fourth straight session. U.S. gold futures dropped 0.5% to $1,830.20.
Jigar Trivedi, Manager — Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers
Gold may dip as traders await comments from Fed Chair Powell for clues on inflation and monetary policy, amid the growing drumbeat of warnings about the risk of an economic slowdown. Powell will deliver his semi-annual testimony on monetary policy to Congress this week — he’s addressing the Senate Banking Committee on Wednesday and the House Financial Services Committee on Thursday. MCX Gold Aug may fall to Rs. 50,500 per 10 gm.
Bhavik Patel, Commodity & Currency Analyst, Tradebulls Securities
Gold continues to trade in the range of $1805-1850 as it reacts to two opposing forces namely rising interest rates and soaring inflation. Gold’s ability to bounce back from $1800 shows buyers’ conviction in finding gold attractive at that level while failure to sustain above $1850 shows buyers not convinced that gold may rise further and thus booking profits around that level. Today’s weakness in gold is attributed to strength in the US dollar as recession fears are growing. Another reason for range bound movement is Hedge funds had exited their long position before the FOMC meet and are yet to take any fresh positions. Speculators cut their bullish position to nine month low while ETF holdings dropped to three month low. Today we might see more selling pressure and once again gold testing its support of $1805. In MCX, support comes around 50300.
Pritam Patnaik, Head – Commodities, HNI and NRI Acquisitions, Axis Securities
Gold prices have come under mild pressure ahead of Fed Chair Jerome Powell’s key Testimony this week. A strong dollar and rising bond yields have also contributed to the softening of gold prices. The Fed has indicated that they are looking at raising interest rates by as much as 1.25 % in the next couple of months, 75 basis points in July and 50 basis points in September. This makes things very difficult for Gold bulls. That said, the higher interest rates coupled with low growth could easily push the global economy into recession, which in turn will be supportive for gold prices and help establish a floor price for the metal. In such a time range bound trading is advisable. The first support is at &1828, which if breached we could see levels of $1813 and $1805.
Tapan Patel, Senior Analyst — Commodities, HDFC Securities
Gold prices traded weak on Wednesday with spot gold prices at COMEX were trading 0.31% down near $1828 per ounce in the morning trade. MCX Gold August futures were trading 0.30% down near Rs. 50607 per 10 gram. Gold prices fluctuated below $1840 per ounce struggling to find a way on a stronger dollar despite weaker bond yields. The market sentiments are mixed over recession worries and aggressive FED stance. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1810 and resistance at $1840 per ounce. MCX Gold August futures support lies at Rs. 50200 and resistance at Rs. 51000 per 10 gram.
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