Gold rate today advances on weak US dollar. Silver price hits 32-month high
Gold rate today surged near half per cent in early morning deals whereas silver rate today hit 32-month high in domestic market. In opening bell at commodity market today, gold future contract for June 2023 on MCX (Multi Commodity Exchange) opened upside and went on to hit intraday high of ₹60,343 per 10 gm within few minutes of market opening. In international market, gold price today added 0.35 per cent and came close to $2,000 per ounce levels.
Silver rate today had a gap up opening as the white metal gained buying interest by investors after ease in US dollar rates during morning deals in Asian stock market. Silver future contract on MCX for May 2023 opened upside and went on to climb to its 32-month high after hitting intraday peak of ₹74,790 per kg levels.
According to commodity market experts, this rally in gold and silver rate today can be attributed to ease in US dollar rates as market awaits US CPI data and FOMC meeting minutes release on Wednesday. They said that rise in the US dollar in last three sessions was completely speculative as market was expecting US Fed rate hike after the tight US non-farm payroll data. However, more clarity would come after the speech of US Fed officials on Tuesday and Wednesday and US CPI data and hence American currency came under the sell off heat ahead of these data releases. They said that gold rate today is trading in a broader range of $1,980 to $2,050 whereas its small range is $1,980 to $2,010 per ounce levels.
US dollar in focus
On what fueled gold rates today, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold prices fell in recent sessions as US dollar was gaining momentum on US Fed’s rate hike speculations after the tight US non-farm payroll data release. However, this rise in US dollar rate was completely speculative and hence the rally was bound to take a pause. Market is awaiting US CPI data and FOMC meeting minutes release on Wednesday for more clarity on US Fed’s rate hike decision in its meeting next month. However, weak US CPI data may fuel inflation concern and this may further provide fodder to US Fed rate hike speculations.”
Advising gold investors to remain vigilant about important levels, Anuj Gupta said, “Gold rate today has important support placed at $1,980 per ounce levels. One can look at Dollar Index support at 100 levels as well. If Dollar Index breaches crucial support of 100, then one can expect fresh leg of rally in gold prices whereas breach of current gold price support of $1,980 levels may trigger further weakness in the precious yellow metal.”
On important pivot levels for gold rate today, market expert Sugandha Sachdeva said, “Decoding the price set up, the level of $1,980 and then $1,945 per ounce align as a key support area, while at the domestic markets, ₹59,700 per 10 gm and ₹58,500 per 10 gm are the cushion levels. On the higher side, prices are likely to navigate towards $2,050 per ounce initially and a move towards its all-time high of $2,075 per ounce mark looks also likely on the cards in the near term, which correspond to levels of around ₹61,700 per 10 gm and then ₹62,500 per 10 gm at the domestic markets.”
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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