Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading lower on Monday, while the silver rate is down 0.53%. On Multi Commodity Exchange, gold June futures were trading at Rs 60,307 per 10 grams, down Rs 72 or 0.12%. Silver May futures were trading lower by Rs 391 at Rs 72,930 per kg on MCX.
Globally, the yellow metal prices edged up on Monday as drawn-out discussions around the U.S. debt ceiling and Federal Reserve Chair Jerome Powell’s less-hawkish comments added to the safe-haven bullion’s appeal, according to Reuters. Spot gold was up 0.1% at $1,978.06 per ounce as of 0347 GMT, while U.S. gold futures eased 0.1% to $1,979.40.
Gold prices gain after weekly loss
“Gold price inched higher after posting a weekly loss, following less-hawkish comments from the U.S. Federal Reserve Chair Jerome Powell, with uncertainty around the U.S. debt ceiling outcome and over the banking sector’s stability adding to safe-haven bullion’s gains. Governor Powell in his speech on Friday mentioned that it is still unclear if U.S. interest rates will need to rise further, as central bank officials balance uncertainty about the impact of past hikes in borrowing costs and recent bank credit tightening with the fact that inflation is proving hard to control. Fed officials statements in the past sessions have been a bit mixed, as some are in the favor of raising rates further, while others are talking about a pause.
“Markets are now again pricing in ~90% chance of the Fed standing pat on rates next month, according to the CME FedWatch tool. U.S. President Joe Biden and House Republican Speaker Kevin McCarthy will meet to discuss the debt ceiling on Monday, after a “productive” phone call as the president headed back to Washington, the two sides said on Sunday. This week as well several Fed officials are scheduled to speak, along with that focus will be on US GDP, PMI data, FOMC meeting minutes and updates regarding debt ceiling talks,” said Manav Modi, MOFSL.
Gold prices to remain volatile
“Gold and silver showed very high volatility and recovered from their lows after profit taking in the dollar index from their highs and the U.S. debt ceiling talks. Gold and silver rate also gained amid weakness in the rupee. The U.S. Fed Chairman’s comment on further interest rates was slightly dovish than expected and also supported gold and silver prices at lower levels. However, the U.S. 10-year bond yields gained again amid uncertainty on the U.S. debt ceiling and crossed 3.65% levels and cap gains of precious metals.
“We expect gold and silver to remain volatile in today’s session. Gold rate has support at $1968-1955 while resistance at $1992-2005. Silver price has support at $23.55-23.42, while resistance is at $24.05-24.22. In INR terms, gold has support at Rs 60,110-59,880, while resistance is at Rs 60,610, 60,790. Silver has support at Rs 72,620-71,950, while resistance is at Rs 73,850–74,320,” said Rahul Kalantri, VP Commodities, Mehta Equities.