Gold rate today under pressure on strong US dollar, Fed rate hike speculation
3 min read . Updated: 10 Apr 2023, 11:03 AM IST
Premium- Gold rate today has immediate support placed at ₹59,700 in domestic market and at $1,980 in international market
Gold rate today witnessed profit booking after the US dollar extended its relief rally on Monday morning deals. Gold future contract on MCX (Multi Commodity Exchange) for June 2023 opened lower at ₹60,402 per 10 gm levels and went on to hit intraday low of ₹59,958 levels. However, gold price today witnessed bottom fishing at lower levels and regained the psychological ₹60,000 mark. In international market, the yellow metal price is quoting around 0.75 per cent lower at around $1,990 per ounce levels.
According to commodity market experts, gold price today has support placed at $1,980 levels and one should initiate buying at support levels as the precious yellow metal is in $1,980 to $2,010 zone. They said that gold rate today is trading sideways to positive. On reason for dip on yellow metal price, experts said that due to tight US non-farm payroll data, speculations are rife that US Fed may increase interest rate in next meeting. However, they maintained that US Fed officials are yet to comment on non-farm payroll data.
Why gold price is falling today?
On reasons for dip in gold rate today, Anuj Gupta, Vice President — Research at IIFL Securities said, "Gold prices are falling today after upside in US dollar rates due to tight US non-farm payroll date release on Friday last week. Due to tight non-farm payroll data, speculations are rife about US Fed rate hike in next meeting. However, US Fed officials are yet to comment on the tight non-farm payroll data. So, rise in US dollar rates may turn out a relief rally once there is any rebuttal from the US Fed officials in near term."
Anuj Gupta advised gold investors to maintain 'buy on dips' strategy and suggested buying around support levels as rebuttal from US Fed officials in rate hike may inject fresh rally in gold prices whereas in case of non comments, the precious metal will find buying support at lower levels.
Gold price outlook
On important levels for gold price in domestic and international market, market expert Sugandha Sachdeva said, "Decoding the price set up, the level of $1,980 and then $1,945 per ounce align as a key support area, while at the domestic markets, ₹59,700 per 10 gm and ₹58,500 per 10 gm are the cushion levels. On the higher side, prices are likely to navigate towards $2,050 per ounce initially and a move towards its all-time high of $2,075 per ounce mark looks also likely on the cards in the near term, which correspond to levels of around ₹61,700 per 10 gm and then ₹62,500 per 10 gm at the domestic markets."
On suggestion to gold investors who have very short term perspective, Anuj Gupta of IIFL Securities said, "Short range for gold investors lies in between ₹59,850 to ₹60,900 whereas in international market, short range is $1,980 to $2,010 per ounce. One can buy gold at current levels for near term target of ₹60,900 maintaining stop loss at ₹59,850 per 10 gm levels."
US non farm payroll data
The US Labor Department data on Friday showed that non-farm payrolls increased by 236,000 jobs last month. The US non-farm payroll data also highlighted that annual wage gains slowed but remained too high to be consistent.
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.