Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India fell on Tuesday, as global rates hovered near a 2-week low. MCX gold was down by Rs 197 points or 0.4 per cent to Rs 52,064 per 10 grams. Silver June futures were ruling at Rs 65,717 per kg, down Rs 829 or 1.25 per cent. Globally, yellow metal prices edged lower near their lowest level in two weeks touched in the previous session as an elevated U.S. dollar continued to pressure demand for greenback-priced bullion, according to Reuters. Spot gold was down 0.1% at $1,928.08 per ounce, while U.S. gold futures were down 0.2% at $1,930.10.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
COMEX gold trades about 0.5% lower near $1925/oz weighed down by firmness in US dollar amid Fed’s hawkish stance and some profit taking by ETF investors. However, supporting prices are concerns about the health of the Chinese economy, increasing Russia-Ukraine tensions and inflation concerns. Gold has corrected after failing to sustain near $2000/oz level and may remain pressurized unless we see some stability across commodities.
Pritam Patnaik, Head – Commodities, HNI and, NRI Acquisitions, Axis Securities
With the global central banks moving towards a higher interest rate environment, led by the US Fed, it’s not surprising to see the pressure on Gold prices. The Fed chair has made it amply clear that 0.50% rate hike in May is no more of an expectation, but more of a certainty. The gold traders are worried that stubborn inflation could force the Fed’s hand for more aggressive hike, post the 50 basis point hike in May. With the dollar index making a new high at 101.29 and the bonds yields rallying, it’s not surprising to see the lack of interest in a non-interest bearing asset like gold. Technically gold has a strong support around $1920 levels, if breached, we could witness additional pressure on prices.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold fell by around 2% and as signs of faster policy tightening by Fed lifted Treasury yields and the dollar. U.S. yields were seen hovering around the 2.9 levels last week, while the dollar is quoting around 101 mark weighing on the metal prices. Liquidation witnessed at the end of the week came after a tough rate hike dialogue, started early in the week by various Fed officials, including James Bullard and Evans, and also the same was echoed toward the end of the week by Chairman Jerome Powell himself. With expectations for a 50bps rate hike at the Federal Reserve’s May meeting of State and Defence Secretary for more powerful weapons during an expected visit by the officials to Kyiv as the Russian invasion enters its third month. Economic calendar is fairly light for the day w.r.t. the U.S. Although, focus for the week will be on the U.S. GDP, consumer confidence and Core durable goods orders data. Broader trend on COMEX could be in the range of $1880- 1955 and on domestic front prices could hover in the range of Rs 51,650- 52,500
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