Gold rate today witnessed some selling pressure in early morning deals after the spread of news reports saying the US Fed chief Jerome Powell to re-iterate hawkish stance on interest rates while testifying before the US Congress this week. Gold price on the Multi Commodity Exchange (MCX) opened lower at ₹63,401 per 10 gm level but attracted buying at lower levels and climbed to an intraday high of ₹63,502 per 10 gm. In the international market, spot gold price is oscillating around $2,080 per ounce level.
According to commodity market experts, the gold rate today is under the sell-off heat after the media reports about the US Fed chief Jerome Powell talking hawkish while testifying in the US Senate this week. They said that the hawkish UIS Fed rate buzz has triggered fresh buying in the US bond and currency market.
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Why gold rate today under pressure?
On trigger for the decline in gold price today, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “Last week, we saw a strong upside in gold price after the ease in US inflation, which triggered US Fed rate cut buzz in upcoming US Fed meeting. This pushed gold prices to a nine-week high in the domestic market and a three-month high in the international market. However, the focus has now shifted towards the US Fed chief Jerome Powell’s testimony before the US Senate on Wednesday. Ahead of the US Fed chief’s testimonial before the US Congress, some US Fed officials have dropped a hint that the US Fed chief may talk hawkish in the US Senate. This has triggered fresh buying in the currency and US bond market.”
Gold price outlook
On strategy for gold investors, Sugandha Sachdeva, Founder of WealthWave Insights said, “The overall price set-up suggests that intermittent corrections may occur, but they are likely to attract buying interest. Gold price has established strong support around the ₹61,800 per 10 gm mark and appears poised to advance towards the ₹64,200 per 10 gm mark in the near term. Similarly, the silver rate today has formed a solid base near the ₹70,500 per kg mark and is anticipated to trend higher towards the ₹73,300 to ₹74,000 per kg levels in the coming days.”
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Advising a buy-on-dips strategy to gold investors, Deveya Gaglani, Research Analyst – Commodities at Axis Securities said, ” The overall trend is bullish for prices. Investors will keep an eye on non-farm payroll data, which is due this week, to confirm the bullish breakout. We recommend Buy-on dips in Gold as long as the 63000 level is intact on the downside.”
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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