Gold, silver rate today under pressure as US dollar climbs to two month high
Gold rate today opened lower on Multi Commodity Exchange (MCX) as uncertainty over US Fed’s rate hike helped US dollar to sustain at two month highs. Gold future contract for August 2023 opened lower at ₹59,555 per 10 gm and went on to hit intraday low of ₹59,425 per 10 gm levels within few minutes of commodity market’s opening bell today. In international market, gold price today is oscillating around $1,945 per ounce levels.
Likewise, silver rate today opened lower on MCX at ₹71,901 per kg levels and went on to hit intraday low of ₹71,741 per kg levels during early morning deals. In international market, silver price today is around $23.55 per ounce levels.
On why gold rate today is under sell off heat, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold and silver prices are under pressure today because of the uncertainty over US Fed rate hike. This US Fed’s jitters has boosted US dollar and the American currency has managed to climb at two months high and sustain there.”
Speaking on the reason for US Fed jitters, Deveya Gaglani, Research Analyst – Commodities at Axis Securities said, “Gold prices retraced from the strong resistance zone at the 60400 level, reaching 59600, after breaking through the significant support zone at 60000. The dollar index strengthened due to a better-than-expected Non-Farm Payrolls (NFP) report, which dampened the sentiment surrounding bullion. On the daily chart, gold prices formed a large red candle and closed below the previous candle’s low, indicating a negative signal for prices.”
Axis Securities expert went on to add that gold price is currently trading below both the 20-day and 9-day exponential moving averages (EMA), while the momentum indicator Relative Strength Index (RSI) is below its reference line, further suggesting a bearish outlook for prices.
Gold, silver price levels to watch
On important levels in regard to gold and silver prices, Anuj Gupta said, “Gold price today has strong support at ₹59,000 per 10 gm levels in near term whereas it is facing hurdle at ₹60,000 and ₹60,500 per 10 gm levels on the higher side in short term horizon.” In international market, gold rate today is trading in $1,920 to $1,980 per ounce levels, he added.
“Silver rate today has support placed at ₹70,000 levels whereas it is facing resistance at ₹73,000 per kg levels. The white metal has strong support placed at $22.80 per ounce levels in international market,” said Anuj Gupta.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 05 Jun 2023, 10:17 AM IST
