Gold Price Today: Yellow metal trade remains subdued ahead of monetary policy outcomes of major central banks

Trading in gold remained subdued on Monday ahead of monetary policy outcomes from major economies.

The June gold futures were trading Rs 51 or 0.09% lower at Rs 59,794 per 10 grams on the MCX at 11:15 am. Meanwhile, the May silver futures were trading at Rs 74,295 per kg, down Rs 359 or 0.48% around the same time.

On Comex, the gold futures were trading at $1,988.60 per troy ounce while silver futures were trading at $24.90 per troy ounce.

The monetary policy meeting begins with the Bank of Japan on April 27. It will be followed by the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting on May 2 and 3. Next in line are European Central Bank (May 4) and Bank of England (May 11).
The yellow metal is struggling to hold above physiological level of $2000 per ounce as expectation that the Federal Reserve will continue its aggressive monetary tightening to curb inflation weighed on price, Saumil Gandhi, Senior Analyst (Commodities), HDFC securities said.

Throughout the last week, price traded in choppy range with negative bias amid hawkish commentary from Federal Reserve officials and uptick in US dollar and bond yields while weaker US macro data protected further downside in yellow metals, Gandhi said.

"We expect gold price should consolidate within range with negative bias. Traders await fresh cues from US macro data due later this week that will help to guide the Federal Reserve further stance on interest rate policy. Comex spot gold having supports at $1965/$1950 per ounce and resistance at $2005/$2019 per ounce. MCX Gold June future having support at Rs 59410 per 10 gram and resistance at Rs 60340 per 10 grams," the HDFC Securities expert said.

Commodity analyst at Sharekhan Praveen Singh expects gold to trade with a bearish tilt today. He sees support at $1969-1950 while resistance at $2020. The US data released on Friday appears bearish for the yellow metal as US PMIs topped the forecast.

S&P global manufacturing PMI preliminary data for April showed that the US manufacturing expanded as the Index came in at 50.40 as against the forecast of 49.

"Ten-year US yields at 3.563% are a tad lower and the Dollar Index is flattish. The US Federal Reserve speakers are in a blackout period until the FOMC decision due in the first week of May," Singh said.

Gold has gained 8.76% or Rs 4,815 per 10 gram on the year-to-date basis while the month-to-date gains have been 1.41% or Rs 836, Commodity and currency expert at IIFL Securities Anuj Gupta said. As for Silver futures, the YTD gains have been 7.11% or Rs 4,933 per kg while the MTD gains are at 2.91% or Rs 2,098, he added.

Intraday Trading Strategy by Anuj Gupta

- Buy MCX June Gold futures at Rs 59,500 with a stop loss of Rs 59,200 and price target of Rs 60,100.


- Buy MCX May Silver futures at Rs 75,200 with a stop loss of Rs 75,850 and price target of Rs 74,000.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)