Destabilizing speculation

MCX Gold will oscillate between Rs 50500-51450, can trade sideways till today; negative interest rate hike for gold

Gold price today, gold price outlook, gold price forecast: Gold and silver prices fell in India on Wednesday on weak global signals. On Multi Commodity Exchange, August gold futures reigned at Rs 88 or 0.2% at Rs 50,880 per 10 grams, compared to the previous close of Rs Rs 50,968. July silvers were trading at 62,005 rupees per kg, down 238 rupees or 0.4% on MCX. Globally, yellow metals prices edged lower as the rising dollar and Treasury yields limited bullion’s appeal as investors waited on U.S. inflation data for further direction on interest rates, according to Reuters. Spot gold fell 0.2% to $1,848.75 an ounce, while US gold futures were flat at $1,851.20.

Navneet Damani, Senior Vice President – Commodities and Currency Research, Motilal Oswal Financial Services

Gold prices traded near $1,850 amid volatility in US yields and the dollar, as investors awaited the US inflation report this week for further clues to the economy as central banks around the world are taking steps to ease inflationary pressure. After a positive jobs number last week, market participants look ahead, fueled to stay on an aggressive path on interest rates, although it’s important to see the expected inflation number later this week. to understand the health of the economy and the position of central banks. . Today’s focus will be on the RBI policy meeting, which could trigger a further move in the national currency. Today, EU growth figures are also in line with the economic calendar. A broader trend on the COMEX could be between $1,830 and $1,870 and on the home front, prices could swing between Rs 50,500 and 51,450.

Tapan Patel, Principal Analyst — Commodities, HDFC Securities

Gold prices traded flat on Wednesday, with COMEX spot gold prices trading near $1,848 an ounce in morning trade. MCX Gold Aug futures opened marginal margin near Rs. 50,900 per 10 grams. Gold prices maintained a firm trading range amid falling US bond yields and speculation over inflation data. Gold prices could remain volatile ahead of next week’s US FOMC meeting, where a 50 basis point rate hike is already expected. We expect gold prices to trade sideways for the day with COMEX Spot Gold support at $1840 and resistance at $1860 per ounce. MCX Gold Aug support stands at Rs. 50700 and resistance at Rs. 51200 per 10 grams.

Pritam Patnaik, Head – Commodities, HNI and NRI Acquisitions, Axis Securities

All gold traders are waiting for the US gold inflation report due this week to establish a clear trade in the metal. Currently, the metal has been in a range bound trading pattern. US Treasury Secretary Janet Yellen told senators on Tuesday that she expected inflation to remain high and that the Biden administration would likely raise the inflation forecast to 4.7% for this year in its budget proposal. While a higher inflationary setup supports gold prices, aggressive interest rate hikes by all central banks are negative for non-interest bearing assets like gold. Expect the range bound trade to continue.

Jigar Trivedi, Director — Basic Non-Agricultural Research, Anand Rathi Shares & Stock Brokers

Gold could rise amid warnings of slowing global economic growth. A spike in inflation adds appeal as a traditional safe haven. The World Bank has further cut its forecast for global economic expansion in 2022, warning that several years of above-average inflation and below-average growth lie ahead with potentially destabilizing consequences for low- and middle-income economies. .

(The views expressed in this story are expressed by the respective experts at the research and brokerage firm. Financial Express Online takes no responsibility for their advice. Please consult your investment advisor before investing.)