Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India fell over 1 per cent on Thursday, after the global rates remained steady near a one-week low. On Multi Commodity Exchange, Gold February futures were ruling at Rs 48,254 per 10 gram, down Rs 597 or 1.22 per cent. In the previous session, gold futures ended at Rs 48,851. Silver March futures were trading at Rs 63,300 per kg, down Rs 771 or 1.20 per cent on MCX. Globally, yellow metal was flat, holding near a one-week low hit in the previous session, after the Federal Reserve decided on March rate hikes that pushed up U.S. Treasury yields and the dollar, while uncertainty over Ukraine capped bullion’s losses, according to Reuters. Spot gold was unchanged at $1,817.29 per ounce, while U.S. gold futures fell 0.7% to $1,817.20.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold edged lower after the FOMC policy meet, as the Fed decided on March rate hikes that pushed up U.S. Treasury yields and the dollar, while uncertainty over Ukraine capped bullion’s losses. GovernorJ. Powell said that the central bank was ready to raise interest rates in March and reaffirmed plans to end its bond purchases that month with an objective of to calm the rising inflationary concerns. The Fed also mentioned that it expects to start the process of balance sheet unwinding after it has begun raising rates. On other hand, tensions continue to mount as fears of Russia’s invasion in Ukraine persist, dialogue between the two countries is in process and if things go south there could be a possibility of sanctions and retaliations. Market participants today will keep an eye on the important U.S. GDP, Core PCE, durable goods orders and weekly jobless claims data which could give further trigger to the market. Broader trend on COMEX could be in the range of $1790- 1830 and on domestic front prices could hover in the range of Rs 47,900- 48,700
Tapan Patel, Senior analyst commodities, HDFC Securities
Gold prices traded weak on Thursday with COMEX Spot gold prices were trading near $1815 per ounce in the morning trade. Gold prices at MCX for February futures were trading down by more than 1% despite rupee depreciation near Rs. 48240 reflecting overnight fall in global gold prices. Gold prices reacted to the US FOMC outcome where FED kept interest rates unchanged but signalled rate hike in March. The US 10 year bond yields surged to 1.86% lowering demand for yellow metal. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1800 and resistance at $1830 per ounce. MCX Gold February support lies at Rs. 48000 and resistance at Rs. 48600 per 10 gram.
Bhavik Patel, commodity and currency analyst, Tradebulls Securities
Gold saw a crash of $24 after the Federal Reserve announced its updated monetary policy. It was what participants had anticipated that they would keep interest rates near zero for the time being while they let balance sheet run off in the background and do double tightening in March where they will wind up their asset purchase program and start lifting rates. US yields and US dollar jumped after the announcement leaving all other asset classes down. U.S. Treasury two-year yields climbed to a 23-month high at the start of Asian trading on Thursday, while 10-year yields hovered near one-week highs touched in the last session and the US dollar hit a 2 month high. We believe in the very short term, gold will be under pressure and since equity assets are in oversold regions, we might see some bounce back in not just equity asset but in precious metals too. So we would refrain from creating any fresh short positions from here on unless Gold breaches $1790 in COMEX and wait for some stability at lower levels to start buying.
Jigar Trivedi, Manager — Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers.
Fed Chair Jerome Powell didn’t rule out raising interest rates at every meeting to rein in the quickest inflation in a generation. Gold is expected to remain subdued amid a stronger dollar after Fed Chair Powell said during the regular press conference after the FOMC decision that there is quite a bit of room to raise interest rates without dampening employment. The metal has been recently driven by a combination of profit-taking after reaching recent highs and concerns on the next steps of the US central bank as rates hikes raise the opportunity cost of holding the bullion. MCX Gold February may fall to Rs. 48,100 per 10 gram.
(The views and investment tips 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.)
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