Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading weak on Monday, on the back of weak global cues. On Multi Commodity Exchange, gold June futures were trading Rs 21 down at Rs 52,050 per 10 grams, as against the previous close of Rs 52,071. Silver May futures were ruling at Rs 67,050 per kg, up Rs 58. Globally, yellow metal prices eased as the dollar and Treasury yields firmed on prospects of aggressive interest rate hikes by the U.S. Federal Reserve, while fresh concerns over Russia’s attacks in eastern Ukraine lent some support to the safe-haven metal, according to Reuters.
Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities
Gold prices jumped as it braces for higher Tuesday CPI inflation number. Gold has concluded its consolidation period and moved back into a solid rally mode. Gold prices have shown resilience despite 10-year bond yields rising to their highest level in 3 years after March Federal Reserve suggested that committee members could raise interest rates by 50 basis points at the next two meets. Despite all this bearish news, gold has managed to consolidate between $1,900 and $1,950 an ounce. We believe this week prices are expected to trade higher on account of expectation of higher than expected CPI inflation number. Gold is on cusp of breakout above 52300. It has immediate support at 51250. Buy on dips as long as 51250 is not breached on the downside.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold prices surged as updates regarding geo-political tensions between Russia – Ukraine and Covid related cases in China gave a boost to the overall safe haven assets. Although, Fed’s aggressive stance to combat inflation, recovering bond yields and stronger dollar are capping gains for the same. FOMC March minutes revealed that apart from the 50bps rate hike, Fed is also likely to reduce its balance sheet by $95 bln a month, in the May meet. Russia’s escalated military action following its invasion of Ukraine continues to create geopolitical uncertainty and could prolong the rise of inflationary pressures. Market participants will pay a close attention to U.S. inflation numbers in what will be a very data-heavy week. Analysts are looking for prices pressures to reach new four-decade highs of well above 8% in March. Inflation and industrial production data from major economies will also be on the watch this week. Broader trend on COMEX could be in the range of $1925- 1960 and on domestic front prices could hover in the range of Rs 51,700- 52,600.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades marginally lower near $1942/oz after a 0.4% gain in previous session. Gold is pressurized by firmer US dollar and higher bond yields as Fed officials express support for faster monetary tightening to get inflation under control. However, supporting price are concerns about health of Chinese economy amid rising virus cases and disappointing economic data, continuing Russia-Ukraine fighting and persisting inflation concerns. ETF investors moved to sidelines awaiting fresh triggers. Gold has been stuck in a range and this may continue unless there are fresh triggers however with persisting geopolitical risks, prices may remain supported
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