Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading flat on Friday, while the silver rate is down 0.54%. On Multi Commodity Exchange, gold August futures were trading at Rs 59,762 per 10 grams, down Rs 59 or 0.1%. Silver July futures were trading lower by Rs 369 at Rs 73,400 per kg on MCX.
Globally, the yellow metal prices dipped on Monday as the U.S. dollar edged higher, and investors positioned for a series of major central bank policy meetings this week, with a likely pause in interest rate hikes by the U.S. Federal Reserve, according to Reuters. Spot gold fell 0.3% to $1,954.78 per ounce by 0235 GMT. U.S. gold futures fell 0.4% to $1,969.10.
“A slew of major economic events are scheduled for the week, including monetary policy meetings from Fed, ECB and Bank of Japan. US CPI data and Retail sales are also going to be crucial. The Federal Reserve might keep the interest rates unchanged, but a June pause is no guarantee that the Fed will stop hiking rates. Fed chair Jerome Powell might sound hawkish and reiterate the data dependent approach, raising the prospects of further hikes in future if inflation fails to ease. Markets are going to be extremely data sensitive,” said Ravindra V. Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities.
Gold prices slip
“Gold rate inched lower in early morning trade amidst a steady dollar and US Yields, as investors positioned for a data heavy week along with a series of major central bank policy meetings. Gold price climbed by more than 0.5% in the previous week, helped by a more than 1% jump last Thursday after a surge in U.S. weekly jobless claims. Inflation data, due this week, is expected to factor into the Fed’s decision, given that the central bank’s main goal in this rate hike cycle has been to bring down inflation. While inflation is well below the near 40-year highs seen through 2022, it is still above the Fed’s 2% annual target.
“Market participants in this week’s Fed meeting are factoring a more than 70% probability for a pause and 30% for a 25 bps rate hike, supporting the safe haven assets. Physical gold demand slowed in China and India last week, forcing dealers to offer discounts, with volatile prices in India prompting buyers to delay purchases. Focus today will be on CPI and IIP data on the domestic front,” said Manav Modi, Analyst, Commodity and Currencies, MOFSL.