Gold Price Today, Gold Price Outlook, Gold Price Forecast: MCX Gold prices tumbled on Wednesday, while silver rates rose 0.16%. On the Multi Commodity Exchange, gold October futures were trading at Rs 58,878 per 10 grams, down by Rs 96 or 0.16%. Silver September futures were trading up by Rs 109 at Rs 70,063 per kg on the MCX.
Gold prices stalled on Wednesday, a day after breaching the key $1,900 support level for the first time in 1-1/2 months as US Treasury yields were boosted on expectations the Federal Reserve is not yet finished with its rapid monetary tightening cycle, according to Reuters. Spot gold held its ground at $1,903.70 per ounce, while US gold futures were flat at $1,935.40.
“Gold and silver prices were modestly lower in international markets on Tuesday, as a better-than-expected US economic report maintained pressure on the precious metals. The dollar index crossed 103 marks and the US 10-year bond yields also breached 4.20% levels after upbeat US data. The Chinese economic data were again disappointing as the slowing consumer demand in the world’s second-largest economy further hurt precious metals. However, weakness in the rupee is supporting prices in the domestic markets,” said Rahul Kalantri, VP Commodities, Mehta Equities.
“We expect gold and silver to remain volatile in today’s session. Gold has support at $1892 – 1880 while resistance is at $1912-1925. Silver has support at $22.40 – 22.24, while resistance is at $22.71 – 22.88 In INR terms gold has support at Rs 58,570 – 58,350. while resistance is at Rs 59,210 – 59,480. Silver has support at Rs 69,310 – 68,720, while resistance is at Rs 70,540 – 71,040,” Rahul Kalantri added.
Traders eye FOMC meeting minutes
“Gold and silver languish as strong US data stokes Fed rate hike woes and supports an up-move in the Dollar index and US Yields. After a positive US PPI last week, US retail sales also increased more than expected in July, suggesting the economy continued to expand early in the third quarter while keeping a recession at bay. Interestingly CME Fed-Watch tool continues to show more than a 90% probability of a pause in Sep meet, while Fed officials are preparing the market for a rate hike, keeping market participants on edge. Minneapolis Fed President Kashkari said that while the US Central Bank has made some progress in its inflation fight, interest rates may still need to go higher to finish the job,” said Manav Modi, Research Analyst Commodities and Currencies at MOFSL.
“Amidst these higher interest rate expectations, benchmark 10-year US Treasury yields hit an almost 10-month high and Dollar index traded around their 7-week highs. Focus today will be on the UK CPI, EU GDP, US IIP and FOMC meeting minutes. SPDR holdings extended declines to hit their lowest level since January 2020 at 894.43 metric tons,” Manav Modi added.