Gold rates today under pressure on soaring US dollar, Fed rate hike worries
2 min read . Updated: 20 Feb 2023, 10:21 AM IST
Premium- Gold rates today opened flat in international market and went on to hit intraday low at around $1,837 per ounce
Gold rate today opened lower on rising US dollar price and US Fed rate hike worries. Gold future contract on Multi Commodity Exchange (MCX) for April 2023 opened at ₹56,209 per 10 gm levels, ₹19 lower from its Friday close of ₹56,228 levels. However, gold price went further down at ₹56,201 levels within few minutes of commodity market opening. In international market, the yellow metal opened flat at $1,842 per ounce and went on to hit intraday low of $1,837.47 per ounce in early morning deals.
According to commodity market experts, gold prices are under pressure due to soaring US dollar rates and renewed worries of US Fed rate hike. They said that after the strong US economic date announced last week, speculation are high about rise in US inflation that may prompt US Fed to go for the interest rate hike. They said that gold prices may continue to remain volatile till US Fed's FOMC minutes are not over and advised gold investors to know their levels before taking any investment decision.
On why gold price are under pressure, Anuj Gupta, Vice President — Research at IIFL Securities said, "Gold rates today are under pressure because of the soaring US dollar price against major global currencies. Dollar Index today has opened higher and logged around 0.10 per cent rise in early morning session that put gold prices under pressure. Apart from this, sentiments in regard to precious bullion metal is already weak as there is huge buzz about US Fed raising interest rates in upcoming FOMC meeting this week as strong US economic data released last week have renewed the inflation worries once again."
However, Anuj Gupta said that yellow metal price would remain range bound and one should maintain buy on dips at lower levels. He said that gold prices in domestic market has support placed at ₹55,500 levels whereas it is facing resistance at ₹56,700 and ₹57,100 levels.
"One can buy gold at around ₹56,000 levels for short term target of ₹56,450 maintaining stop loss at ₹55,750 per 10 gm levels," said Anuj Gupta.
Asking gold investors to know their levels, market expert Sugandha Sachdeva said, "Gold prices are expected to hover in the range of ₹55,500 to ₹57,200 per 10 gm range. Basically, the movement of the greenback would define the direction of gold."
In early morning deals, US dollar index was up near 0.10 per cent to 103.855 levels. The US currency has been ascending for last three sessions after hitting below 103 levels. Higher than expected US CPI data, US retail sales data and US PPI date are considered major reason for pu8shing US dollar rates in the forex market.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.