Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading lower in India on Thursday, on the back of a fall in international rates as the US Dollar gained strength. On Multi Commodity Exchange, gold June futures were ruling Rs 21 down at Rs 51,574 per 10 gram, as against the previous close of Rs 51,596 per 10 gram. Silver May futures were trading at Rs 66,206 per kg, down Rs 99. Globally, yellow metal prices inched lower as the U.S. dollar firmed after minutes of the Federal Reserve’s March meeting indicated an aggressive stance to combat inflation, denting the safe-haven metal’s appeal, according to Reuters. *Spot gold was down 0.2% at $1,922.08 per ounce, while U.S. gold futures rose 0.2% to $1,926.10.
Jigar Trivedi, Manager — Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers
Gold may decline amid a hawkish undertone from the Fed. The Fed proposed reducing its bond holdings at a maximum pace of $95 billion a month, further tightening credit across the economy as the central bank raises interest rates. Investors fear the more restrictive policy could tip the world’s largest economy into a downturn. Minutes from the ECB’s March meeting, due later in the day, are unlikely to include such hawkish plans, though they could offer insight into policymakers’ delicate balancing act to manage soaring inflation and slowing growth. MCX Gold June futures may fall to Rs. 51,400 per 10 gram today.
Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities
Gold prices were steady after Fed minutes. Minutes indicated that the Federal Reserve will unwind approximately $3 trillion, taking its $9 trillion balance sheet down to $6 trillion over a three-year period. Investors and market participants have factored in a more aggressive monetary policy which is why we have not seen any major correction in prices after release of the minutes. Meanwhile bond yields and the strong US Dollar continues to create headwind for gold prices. We expect prices to trade in range of 51200 to 51900 intraday.
Pritam Patnaik Head – Commodities, HNI, and NRI Acquisitions, Axis Securities
Gold prices in India saw some action owing to volatility in the USD -INR pair, baring that the prices seem inert to all news flow relating to Russian sanctions as well as details emerging out of FED minutes. Internationally, a rising dollar index dimmed the gold’s appeal. The dollar index is trading close to its psychological resistance of 100, as fresh sanctions are slapped on Russia by the US administration. The US has imposed full blocking sanctions on Russia’s Sberbank and Alfa Bank, which currently hold one-third of Russia’s assets. The FED minutes affirmed heightened expectation of an impending interest rate hike of 50 basis points and an increased pace of balance sheet reduction. The precious metal has largely ignored these news flows and continues to trade within a range. The bias will remain negative for the short term, largely owing to a stronger dollar and higher bond yields, in the absence of any significant change in the Russia- Ukraine war.
Anuj Gupta, Vice President, IIFL Securities
We have been witnessing a range bound trade with positive bias in gold. Depreciation in Rupee and sanctions on Russia are supportive for Gold. For today traders can buy gold around 51300 to 51400 levels with the stoploss of 51150 for the target of 52000 levels. They can also go for buy in silver at 66000 levels with the stoploss of 65250 levels for the target of 67000 levels. Weakness in equity is also supportive for bullions. Gold may test $1940 and silver may test $25 soon.
(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.)
