Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading lower on Tuesday, while the silver rate is high by 0.02%. On Multi Commodity Exchange, gold August futures were trading at Rs 58, 620 per 10 grams, lower by Rs 69 or 0.12%. Silver September futures were trading lower by Rs 15 at Rs 71, 380 per kg on MCX.
Gold prices were steady on a weaker dollar on Tuesday, although bullion struggled for momentum as investors were wary of placing big bets ahead of U.S. inflation data that could influence the Federal Reserve’s policy trajectory, according to Reuters. Spot gold held its ground at $1,926.19 per ounce. U.S. gold futures were flat at $1,930.20.
“COMEX Gold prices closed marginally down on Monday, despite a retreat in the greenback and US benchmark treasury yields, as Fed official’s sounded hawkish. Most policymakers expect to increase rates by a further half percentage point by the end of the year, according to projections released after their June gathering. June payrolls report also favoured a 25 bps hike in the next FOMC meeting, ” said Ravindra V. Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities.
Investors stayed cautious ahead of the US CPI data due on Wednesday, which is going to be the major data ahead of the FOMC meeting on 26th July. The headline inflation is expected to ease to 3.1% and core to remain sticky at 5% y/y. Amid a decline in the greenback and yields, we might see a rebound in gold prices for the day,” Ravindra V. Rao added.
Gold to remain volatile
“Gold prices traded steady in the early morning trade as market participants maintained a cautious stance ahead of U.S. inflation data that could influence the Federal Reserve’s rate policy trajectory. A slew of Fed members are also set to speak this week, including Neel Kashkari and Loretta Mester. Members of the central bank have so far echoed Fed Chair Jerome Powell’s stance that more rate hikes are still needed to bring down sticky inflation,” said Manav Modi, Research Analyst Commodities and Currencies at MOFSL.
“Investors see a 94% chance that the central bank would raise rates in its July meeting into the 5.25-5.5% range, as per CME’s Fedwatch tool. Weaker than expected PMI and jobs data from the US weighed on the dollar last week, supporting an up-move in safe haven assets. Along with fed officials comments, focus this week will also be on the U.S. CPI data due tomorrow. While overall inflation is expected to have eased, core CPI inflation is still expected to remain high,” Manav Modi added.