Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading lower on Monday, while the silver rate is up 0.09%. On Multi Commodity Exchange, gold August futures were trading at Rs 58,120 per 10 grams, lower by Rs 91 or 0.16%. Silver September futures were trading higher by Rs 62 at Rs 70,092 per kg on MCX.
Gold prices edged lower in early Asian trade on Monday, pushed down by a stronger U.S. dollar and as chances of more interest rate hikes by the Federal Reserve weighed on bullion’s appeal, according to Reuters. Spot gold fell 0.2% to $1,915.29 per ounce, while U.S. gold futures fell 0.3% to $1,923.10.
“Fed’s preferred PCE price gauges showed that inflation in the U.S. economy is persistent, with the core PCE price index rising by 4.6% annually in May, underscoring the stickiness in inflation. A slew of Manufacturing PMIs from the western economies, US Labour data and FOMC meeting minutes will be in focus for the week, which might continue to weigh down on gold prices,” said Ravindra V. Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities.
Gold to remain volatile
“Gold and silver recovered from 3.5 month lows in a highly volatile session on Friday amid profit taking in the dollar index and downbeat U.S. personal spending data. Besides, marginal cooling of inflation also supported gold and silver prices at lower levels. However, gains in the U.S. 10-year bond yields and strength in the U.S. dollar against the Japanese Yen and Russian ruble could restrict gains of gold and silver.
“We expect gold rate and silver price to remain volatile in today’s session. Gold has support at $1906-1895 while resistance is at $1928-1940. Silver has support at $22.55-22.40, while resistance is at $23.01-23.15. In INR terms gold has support at Rs 57,940-57,780, while resistance is at Rs58,380, 58,550. Silver has support at Rs68,650-68,220, while resistance is at Rs69,740–70,480,” said Rahul Kalantri, VP Commodities, Mehta Equities.
Gold prices inch lower
“Gold price inched lower in the early morning trade, helped by a slightly stronger U.S. dollar and US Yields, with chances of more interest rate hikes by the Federal Reserve weighing on bullion’s appeal. The dollar index was steady near a two-week high, and US Yields inched higher from ~3.6 to ~3.9 levels. U.S. consumer spending stagnated in May on Friday, while the Fed’s preferred core PCE price index, excluding food and energy, increased 4.6% on a year-on-year basis in May after advancing 4.7% in April, slightly supporting the safe haven metals. Investors see an 84% chance of a 25-basis-point hike in July, according to CME’s Fedwatch tool, pricing in another 25 bps rate hike in November, bringing rates into the 5.5%-5.75% range. It is a holiday shortened week as US will be shut for two days, on the back of US independence day. Over in the U.S., the Institute of Supply Management’s (ISM) nationwide PMI reading is expected. Investors this week will also watch minutes of the June 13-14 FOMC meeting,” said Manav Modi, MOFSL.