Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading higher on Thursday, while the silver rate is up by 0.31%. On Multi Commodity Exchange, gold August futures were trading at Rs 59,275 per 10 grams, with gains of Rs 36 or 0.14%. Silver September futures were trading higher by Rs 234 at Rs 75,560 per kg on MCX.
Gold prices were set on Friday for their biggest weekly gain since April, after rallying close to a one-month high, as markets scale back expectations of further U.S. interest rate hikes, sending the dollar to its lowest in more than one year, according to Reuters. Spot gold held steady at $1,961.79 per ounce, and up nearly 2% for the week. U.S. gold futures rose 0.1% to $1,965.80.
“Cooling inflation improved the optimism that Federal Reserve’s rate-hiking campaign may be nearing an end. Money markets are currently expecting the U.S. central bank to raise its funds rate by 25 bps in the July meeting and hold it unchanged for the rest of the year, aiding bullions,” Ravindra V. Rao added.
Gold to have safe heaven
“Gold rate were set for their biggest weekly gain since April, as the U.S. dollar hovered close to a more than one-year low on bets the Federal Reserve will soon hit the brakes on interest rate hikes. The dollar index touched its lowest level since April 2022, making gold less expensive for overseas investors, while the yield on 10-year U.S. Treasury notes held close to a two-week low hit in the previous session. U.S. CPI data released earlier this week was reported at 3% against the previous data of 4%, Core CPI also witnessed signs of easing. Data on Thursday showed U.S. producer prices barely rose in June,” said Manav Modi, Research Analyst Commodities and Currencies at MOFSL.
“The number of Americans filing new claims for unemployment benefits unexpectedly fell sharply last week, indicating the labor market remained tight, capping some gains for metal prices. Federal Reserve Governor Christopher Waller said on Thursday he’s not ready to call an all clear on U.S. inflation and favors more rate hikes this year, saying the upcoming July meeting should bring an increase. CME Fed-Watch tool continue to show higher probability of 25bps rate hike in July and Sept Fed meet. Focus today will be on Michigan consumer sentiment data,” Manav Modi added.