Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading weak in India on Thursday as yellow metal globally fell following the release of US inflation data. On Multi Commodity Exchange, gold August futures were ruling Rs 129 or 0.25 per cent down at Rs 50,673 per 10 gram. Silver September futures were trading at Rs 56,870 per kg, down Rs 257 or 0.45 per cent. Globally, gold prices slipped as Treasury yields and the dollar rose, with bullion’s outlook hurt by fears the Federal Reserve could go for a more aggressive interest rate hike this month, after data showed U.S. inflation sky-rocketed in June, according to Reuters. Spot gold fell 0.4% to $1,728.39 per ounce. and U.S. gold futures dropped 0.5% to $1,726.60.
Tapan Patel, Senior Analyst — Commodities, HDFC Securities
Gold prices traded steady on Thursday with COMEX Spot gold prices were trading near $1732 per ounce in the morning trade. MCX Gold August futures opened marginal down near Rs. 50710 per 10 gram. The yellow metal witnessed recovery post US inflation data despite a stronger dollar. The US CPI rose to 9.10% in June on a year on year basis against 8.6% in May. The higher inflation numbers spurred some buying in gold over recession fears with the market discounting higher rate hike from FED in next FOMC meeting. We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1720 and resistance at $1745 per ounce. MCX Gold August support lies at Rs. 50500 and resistance at Rs. 51100 per 10 gram.
Bhavik Patel, Commodity & Currency Analyst, Tradebulls Securities
Gold witnessed a volatile trading session during the release of the US CPI number which came higher than expected at 9.1%, a level not seen since Nov 81. Prices dived from $1728 to $1708 before covering the losses and making intraday high of $1743. The probability of a rate hike by 75bps is 92.4% according to CME’s FedWatch tool. Gold will remain under pressure but the good thing is the market has already factored a 75bps rate hike so there is no additional incentive for gold to break $1700 at this point. We might see gold trading in the range of $1725-$1750 for this week.
Pritam Patnaik, Head – Commodities, HNI and NRI Acquisitions, Axis Securities
Gold prices witnessed extreme volatility yesterday thanks to the US inflation print of 9.1%, the highest in the last 40 years. Gold prices witnessed extreme volatility, dropping to lows of $1704 and then scaling back to high’s of $1740 plus. With the CPI data coming in much higher than the market estimates of 8.8% , it is almost certain now that the Fed could raise the interest rates by as much as 75 basis or even 100 basis points in its next meet. This clearly spooked the broader markets and led to the collapse of gold prices, but a combination of traditional inflation hedge option and strong support levels prompted gold traders to buy at the low levels, helping the prices recover to $1740-42 and then finally settling around $1730 levels. Going forward, expect the volatility to continue, but one should look at buying on dips.
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