Gold Rate Today, Gold Price on 24 May: Gold trades flat; traders eye FOMC minutes, debt ceiling talks – Gold Price Forecast, Gold Price Outlook

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading flat on Wednesday, while the silver rate is down 0.37%. On Multi Commodity Exchange, gold June futures were trading at Rs 60,307 per 10 grams, up Rs 37 or 0.06%. Silver July futures were trading lower by Rs 264 at Rs 71,900 per kg on MCX. 

Globally, the yellow metal prices moved in a narrow range on Wednesday after another round of talks on U.S. debt ceiling ended with no deal, while investors awaited minutes of the Federal Reserve’s latest policy meeting to gauge the path forward for interest rates, according to Reuters. Spot gold ticked 0.1% lower to $1,973.38 per ounce by 0257 GMT. U.S. gold futures were steady at $1,975.90.

Gold prices trade range-bound

Gold price kept to a tight trading range as markets awaited some progress in negotiations over raising the U.S. debt ceiling. Consistent negotiations between Democrat and Republican lawmakers have so far failed to yield a deal to raise the U.S. spending limit and avoid a default. This comes ahead of a June deadline for a default, which could have dire consequences for the global economy. However, Treasury Secretary Yellen and President Biden have reassured the market that there is progress in the negotiations and the US will be out of these concerns soon. 

“Meanwhile, mixed comments from Fed officials and Governor Powell on the interest rate hike in the next meeting have increased ambiguity in the market. On the data front, after Feb ’23 US services PMI is being reported above the 50 mark; while Manufacturing PMI continues to show signs of struggle. Along with debt ceiling updates, focus today will also be on the minutes of the Federal Reserve’s May meeting, due later in the day, for more cues on the path of U.S. interest rates this year,” said Manav Modi, MOFSL. 

Silver tumbles as dollar gains

Gold rate and silver price were lower on Tuesday, but recovered from their daily lows. Silver notched a seven-week low yesterday. An appreciating U.S. dollar index that hit a two-month high today, as well as rising U.S. Treasury yields, had kept the gold and silver market under pressure. Chart-based selling is also featured recently as the near-term technical postures for both metals has deteriorated. The U.S. dollar index hit a two-month high overnight. 

“Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.74% restricted upside. However buying at lower has seen in the safe-haven gold and silver markets as U.S. debt ceiling negotiations unable to reach any conclusion. We expect gold and silver to remain volatile in today’s session. Gold has support at $1960-1946 while resistance at $1984-1996. Silver rate has support at $23.17-23.05, while resistance is at $23.62-23.82. In INR terms, gold has support at Rs 59,950-59,740, while resistance is at Rs 60,480, 60,690. Silver has support at Rs71,620-70,950, while resistance is at Rs72,850–73,320,” said Rahul Kalantri, VP Commodities, Mehta Equities.

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