Key Highlights :
1. Gold rate today: On account of Dollar Index bouncing back from its one year low of 100.80 levels, gold price lost some sheen on Friday. Gold future contract for June 2023 on Multi Commodity Exchange (MCX) corrected ₹ 890 per 10 gm and closed at 60,348 levels.
2. In international market, yellow metal price ended at $2,003 per ounce after hitting intraday low of $1,992.59 per ounce.
3. According to commodity market experts, US dollar rate rebounded after the hawkish comments by one of the US Fed officials but they maintained that gold price closing above $2,000 levels in international market is a good sign. However, they maintained that further retreat in the US Dollar Index would put the precious yellow metal under pressure.
4. They went on to add that gold price has cushion placed at $1,980 and $1,945 levels in international market whereas on MCX, yellow metal is likely to find cushion at ₹ 59,700 per 10 gm and then ₹ 58,500 per 10 gm mark.
5. US dollar in focus
6. On reason for gold price retracement from life-time high, market expert Sugandha Sachdeva said, "Gold prices jumped to a new record high of Rs.61371 per 10gm and around $2050 per ounce in the international markets during the week. However, a sharp rebound in the dollar index towards the close of the week from multi-month lows of 100.80 odd levels took some sheen off the yellow metal, pushing it into slight negative territory for the week. It was basically hawkish comments from one of the Fed officials that supported strength in the greenback across the board."
7. Sugandha went on to add that gold prices initially spiralled higher as US consumer prices rose by 5% in March, the lowest level in 2 years, even as core prices remained stubbornly higher. Besides, the US Producer Price Index, a measure of wholesale inflation, declined to 2.7% as compared to 4.9% in February, reflecting that price pressures, though they remain elevated, are now receding from four-decade highs.
8. There are a lot of hopes that the US Fed will finally wind down its rate hike cycle, which is leading to a decline in the dollar index and boosting the appeal of gold.
9. Speaking on the surprised hawkish stance of some US Fed officials, Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart said, "According to the minutes of the FOMC meeting, due to the banking crisis, there is a possibility of an economic recession by the end of this year, which may impact the next two years. However, Fed officials still favor a 0.25 percent interest rate
Gold rate today has cushion placed at $1,980 and $1,945 levels in international market, say commodity market experts.
The gold price has been hovering around the $1,980-1,995 range for the past few days, as investors weigh the prospects of a global economic slowdown and the Federal Reserve's decision on when to start scaling back its stimulus program.
"Gold is trading in a tight range and is hovering around the $1,980-1,995 range," said Srinivasan Keshavan, market analyst at National Securities. "The market is awaiting the Fed's decision on when to start scaling back its stimulus program, and this could have an impact on the gold price."
Meanwhile, the silver price has been trading in a tight range around the $30-32 range. "Silver is also hovering around the $30-32 range," said Keshavan. "Investors are awaiting the outcome of the Chinese economic data, as well as the Fed's decision."
The analysts say that the gold and silver prices have been supported by strong demand from investors in China, as well as in other emerging markets. "The demand for gold and silver has been strong in China," said Keshavan. "Investors are looking to diversify their portfolios, and gold and silver are a good option due to their low correlation to other assets."
The analysts say that the gold and silver prices are likely to stay in a tight range for the near future, as investors await the outcome of various global economic and financial events.
