Gold price jumps after US CPI data, FOMC minutes. Silver rate today hits ₹76K

Silver rate today hit ₹76,000 per kg levels on MCX and logged 0.37 per cent rise within few minutes of commodity market opening today. In international market, silver price today is at $25.47 per ounce levels.

According to commodity market experts, both gold and silver rates are rising today after better than expected US CPI data and US Fed flagging off slowdown jitters after banking crisis in the US. They further added that the US dollar rates are under pressure and it may go down to 98 levels once it breaches its support placed at 100 levels. Experts maintained that all these fundamentals are going to fuel gold and silver prices further northward and any dip in bullions should be taken as buying opportunity by gold investors.

Triggers for gold price rally

Speaking on reasons for rally in gold, silver rate today, Anuj Gupta, Vice President — Research at IIFL Securities said, “On Wednesday, US CPI data print for March 2023 came at 5 per cent while the market expectation was 5.10 per cent. Apart from that, US Fed has raised concern over economic slowdown in the US due to banking crisis in the country, which is also going to support bullions in near term.”

IIFL Securities expert went on to add that gold rate today is facing immediate hurdle at $2,030 per ounce levels and it may become highly bullish once it breaches and closes above $2,030 levels. He said that one can expect gold price to climb close to its life-time high of $2,075 levels after the breakout at $2,030 levels. Similarly, silver rate today is facing hurdle at $26 levels and once it breaches and sustains above this level, we can expect it to come close to its recent swing high of around $30 per ounce levels.

“On MCX, if gold price breaches its immediate resistance of ₹61,800, then we may expect the yellow metal to hit ₹63,000 levels in near term. Similarly, if silver rates sustain above ₹76,000 then we may expect the white metal to go up to ₹78,000 per kg levels in near term,” said Anuj Gupta of IIFL Securities.

INR vs USD

Anuj Gupta of IIFL Securities further added that weakness in US dollar is expected to fuel gold prices in international market whereas weakness in Indian National Rupee (INR) is going to support gold prices in domestic market. So, both international and domestic triggers are favouring rally in gold and silver prices.

On US dollar to INR, Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas said, “We expect Indian Rupee to trade with a slight negative bias on concerns over monsoon after Skymet forecast below normal rains. Any pickup in US Dollar amid rate hike expectations and positive crude oil prices may also weigh on Rupee. However, positive domestic markets and fresh FII inflows may support Rupee at lower levels. Investors may look forward to CPI and FOMC minutes from US. Traders may watch out for India’s industrial production and CPI inflation data. USDINR spot price is expected to trade in a range of ₹81.50 to ₹82.70 in the near term.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.