Gold Price Today, 11 June 2021: MCX gold gains as global rates hover near $1900/oz; silver reclaims Rs 72,000

Gold market now appears to be catching bids following strong headline number

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices edged higher on MCX on Friday, as globally yellow metal rates hovered near the key $1,900 per ounce level. On Multi Commodity Exchange, gold August futures were trading Rs 52 up at Rs 49,250 per 10 gram, as against the previous close of Rs 49,198. Silver July futures were ruling Rs 264 or 0.37 per cent higher at Rs 72,263 per kg. Silver futures settled just below the crucial Rs 72,000-mark in the previous session. Globally, investors shrugged off a rise in US inflation data. Spot gold was up just 0.1 per cent at $1,899.28 per ounce. The prices have risen 0.5 per cent so far this week. US gold futures rose 0.3 per cent to $1,901.20 per ounce, according to Reuters. The dollar index fell at 90.057 levels after hitting a near one-week high in the previous session.

Rahul Gupta, Head of Research-Currency at Emkay Global Financial Services

Despite a surge in US CPI, the market has not freaked out. Dollar bulls are convinced that Fed won’t hint at an earlier than expected tapering and reiterate at inflation being transitory. But all will be revealed at the June 16th FOMC meeting, until then dollar index is expected to remain subdued, which will provide support to gold. In MCX Gold, only a consistent trying below 49,000, will push prices towards 48450-48300-48000. The crucial resistance is around 49,650 and sustenance above that will push towards 50,000-50,300.

Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities

Yesterday gold prices bounced off their session lows following stronger than expected US inflation numbers. Headline inflation rose to 5% which is the largest 12 month increase since Aug 2008. Gold market now appears to be catching bid following strong headline number. US Fed had reiterated that inflationary pressure will be transitory and so we believe they will not be in a hurry to tighten interest rate which is positive for gold. Despite positive news for gold, gold bulls seem to be getting tired near $1900 levels and so we would wait for $1920 to surpass before recommending fresh long positions. Open interest suggests long positions getting unwinded and that is why we are not able to see gold ride on the momentum upside. In MCX, 49,800 is the level that gold bulls need to push. Trading range for today seems to be 48,800-49,500 and buy on dips should be the strategy with stoploss of 48,800.

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold trades modestly higher above $1900/oz after a largely flat close yesterday. Gold trades higher supported by choppiness in the US dollar and sharp decline in US bond yield in reaction to US inflation data. ETF inflows also show buying interest in the metal. However, weighing on price is weaker Indian consumer demand and general improvement in global growth outlook. Gold has rescaled $1900/oz and may trade with a positive bias unless there is a strong rise in US dollar and bond yields.

(The views in this story are expressed by the respective experts of research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)