Gold prices recover on cooling US labour market. Should you buy?
Gold rate today: Amid US dollar hitting three-week low and Reserve Bank of India (RBI) Monetary Policy Committee (MPC) meeting scheduled to begin from tomorrow, gold future contract for October 2023 expiry on Multi Commodity Exchange (MCX) opened higher at ₹59,550 per 10 gm and continue to remained sideway around its two week higher levels that it had achieved during Friday deals last week. In international market gold prices shed around 0.20 per cent during early morning session at various Asian stock markets. Gold price today is around $1,938 per ounce levels in international spot market.
Likewise, silver rate today opened lower at ₹72,280 per kg levels and went on to hit intraday low of ₹72,212 levels. In international market, silver price today is around $23.55 per ounce levels.
On why gold rate today is sideways, Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors said, “Dovish comments from a key US Fed official, where he ruled out the need for further rate increases, led to a softening of the dollar index and underpinned gold prices.”
Key triggers for gold prices
On key triggers that may dictate gold and silver prices in near term, Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart said, “Crude oil supply tightening by Russia and Saudi Arabia could keep the US dollar under pressure this week. The expectation of an additional relief package from China to support its economy will strengthen the demand for silver. However, demand for gold ETFs has decreased due to the US rating downgrade by credit rating agency Fitch, which has put pressure on gold prices at higher levels. US inflation and consumer sentiment data will be key triggers for the precious metal this week.”
RBI MPC meeting in focus
However, in domestic market, gold investors are expected to remain vigilant about the outcome of RBI MPC meeting scheduled from 8th August to 10th August 2023.
Deveya Gaglani, Research Analyst – Commodities at Axis Securities said, “Traders will be closely monitoring China and US inflation data. The data print may impact Gold prices this week, confined within a range from the past week.”
Gold price outlook
On important levels in regard to gold prices, Sugandha Sachdeva of Acme Investment Advisors said, “As of now, the precious metal is cementing its base at $1,935 per ounce and ₹59,100 per 10 grams. As long as this support level holds, gold prices are likely to witness buying interest on dips. On the higher side, a breach of ₹59,850 per 10 grams could fuel further upside momentum and push prices towards ₹60,500 per 10 grams in the coming days.”
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.
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Updated: 07 Aug 2023, 09:54 AM IST
