Gold price today, gold price outlook, gold price forecast: Gold prices traded higher in India on Tuesday on positive global trends. On the Multi Commodity Exchange, gold futures traded Rs 87 or 0.2 percent higher at Rs 50,822 per gram in August. July silver futures rose by Rs 241 or 0.4 percent at Rs 60,985 per kg. According to Reuters, prices of yellow metal rose as the dollar fell, even as investors watched the major central banks’ stance on rate hikes for a clearer outlook for precious metals. Spot gold rose 0.2% to $1,841.01 an ounce. US gold futures rose 0.1% to $1,843.10.
Bhavik Patel, Commodity/Currency Analyst, Tradebulls Securities
Gold holds up despite a 75 basis point rate hike by the US Fed. One reason would be that investors fear that aggressive rate hikes would push the economy into recession. While the Fed’s aggressive stance is pushing yields upwards, which make gold unattractive but currently in freefall in the stock market, investors are looking for safe havens in the form of gold. Any drop below $1,800 can generate strong buy signals, supporting prices around current levels. Gold does, however, face headwinds in the form of strong USD and returns. We think gold will hover between 50000-52000 for now and any dips around 50000 would attract investors.
Tapan Patel, Senior Analyst – Commodities, HDFC Securities
Gold prices traded stable on Tuesday, while spot gold on COMEX traded flat near $1840 an ounce in morning trading. MCX Gold August futures opened higher near Rs. 50812 per 10 grams according to fixed COMEX gold prices. Gold prices have held up on a weaker dollar and the absence of new triggers after the volatile week. Fears of a recession and the aggressive rate hike by the US FED could continue the tug-of-war to keep the gold price within the margins.
We expect gold price to move sideways for the day with COMEX Spot gold support at $1820 and resistance at $1860 an ounce. Support for MCX Gold August futures is at Rs. 50500 and resistance at Rs. 51100 per 10 grams.
Jigar Trivedi, Manager — Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers
Gold may remain within the range as investors weighed prospects for monetary policy tightening against the backdrop of inflation concerns and a slowdown in growth. St. Louis Fed President James Bullard warned on Monday that US inflation expectations could come “off” without credible action from the Fed, potentially leading to a new regime of high price pressures and volatile real economic performance. MCX Gold Aug may rise slightly to Rs 50,850 per 10 grams.
Pritam Patnaik, Head – Commodities, HNI and NRI Acquisitions, Axis Securities
With the US dollar index slipping its gains, gold prices have witnessed a small rebound. That said, US 10-year Treasuries rose, capping the gold price’s upward effect. It is becoming difficult to guess the proposed policy action of the global central banks, which limits the bandwidth of the gold markets. While the high inflation environment is ideal for gold, which is a traditional hedge against inflation, a vibrant bond market has eroded the appeal of a non-interest bearing asset like gold. So we expect the range-bound movement to continue.
(The views expressed in this story have been expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)
