Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India fell on Wednesday, following global trends. On MCX, gold June futures were trading Rs 304 or 0.6 per cent down at Rs 52,445 per 10 gram as against the previous close of Rs 52,749. Silver May futures were down by Rs 545 or 0.8 per cent to Rs 68,225 per kg on Multi Commodity Exchange. Globally, yellow metal prices eased following a sharp drop in the previous session, as elevated U.S. Treasury yields continued to pull investors away from zero-yield bullion, according to Reuters. Spot gold was down 0.2% at $1,946.04 per ounce, while U.S. gold futures fell 0.5% to $1,949.50.
Jigar Trivedi is Manager – Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers
On Tuesday, spot gold declined sharply to $ 1,949.7 an ounce, down by $28.9 or 1.46% low as a stronger US dollar and rising Treasury yields overshadowed safe-haven inflows into bullion. Gold may fall as Treasury yields surged on expectations for faster monetary tightening in the US. The precious metal edged lower after tumbling 1.5% in the previous session. Yields on U.S. 10-year government bonds are getting close to 3% and real yields, which take inflation into account, have just turned positive for the first time in more than two years. The improving returns on debt typically damp demand for non-interest bearing bullion. The Fed’s most hawkish official, James Bullard, opened the door to discussing the first 75 basis-point rate hike since 1994. MCX Gold June futures may fall to Rs. 52,100 per 10 gram.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades modestly lower near $1950/oz weighed down by persistent rise in US dollar and bond yields as Fed officials maintained hawkish stance while economic data and corporate earnings results showed stability in the economy. Gold is also pressurized by some recovery in the US equity market as market players geared for the earnings season. However, supporting price is Russia-Ukraine fighting, inflation concerns and concerns about the Chinese economy. ETF flows also show strong investor interest. Gold rallied sharply in the last few days which fizzled out near $2000/oz level and we are now seeing some correction which may extend further amid persistent strength in US dollar and stability in equities.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold prices continue to trade lower, after touching $2000 level at the start of the week, as elevated U.S. Treasury yields and hawkish statements from Fed officials which continued to pull investors away from zero-yield bullion. U.S. Treasury yields continue to be a matter of concern as U.S. 10Y in the previous session was seen hovering around 2.9% level surging to multi-year highs as investors prepared for the Fed to aggressively raise rates as the central bank tries to stem soaring inflation. Fed officials like Bullard, Evans has set an aggressive tone this week w.r.t. to the interest rate for this year. Market participants are anticipating some fireworks in the May meet, whose pressure can be seen in metal prices. Broader trend on COMEX could be in the range of $1925-1970 and on domestic front prices could hover in the range of Rs 52,300- 52,900.
Pritam Patnaik, Head – Commodities, HNI & NRI Acquisitions, Axis Securities
Gold price came under pressure yesterday owing to a surging dollar index, which breached the 101 mark, and rising US yields, which rose stronger than expected US home construction data. Treasury yields surged to 2.942%, the highest since December 2018. Further, Fed member Jim Bullard said that the Fed needs to move quickly to raise interest rates to 3.5% by end of this year, and a 75bp hike should not be ruled out. The direction that the Fed will take will be made clear on Thursday when Fed chair Jerome Powell speaks. It’s widely expected that the Fed will raise interest rates by 50 basis points. This has ensured further pressure on gold prices. The fundamentals are still supportive of a gold bull run in the long term. Factors like stubborn inflation, the onset of stagflation, geopolitical uncertainties, and slow growth will be supportive of gold prices and will help create a vision for any fall. In the short term, there could be a correction to the levels of $1920-25, which could be a good level to enter into gold.
(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)
