Gold rate today: Despite US dollar hitting five week low, gold price continue to trade tepid on Thursday. Gold future contract for August 2023 expiry on Multi Commodity Exchange (MCX) opened lower at ₹59,340 per 10 gm and went on to hit intraday low of ₹59,311 per 10 gm levels in early morning session. During early morning deals at Asian stock market today, gold price registered around 0.05 per cent dip and hit $1,956 per ounce levels.
Silver rate today on MCX opened higher at ₹72,323 per kg levels and went on to hit intraday high of ₹72,366 levels within few minutes of market opening. However, profit booking soon triggered and silver price nosedived and hit intraday low of ₹72,219 per kg levels.
US dollar in focus
On why gold and silver price are trading sideways, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold and silver prices are trading tepid for last few sessions despite US dollar hitting five week low in international market. This is because of the Indian National Rupee (INR) climbing to five week high during early morning deals on Friday.”
However, Anuj Gupta of IIFL Securities maintained that after European Central Bank (ECB) has raised interest rate by 25 bps in its Thursday meeting, which may pave way for other central banks to follow shoot. Hence, weakness in the US dollar may further continue and this is expected to lend support to the yellow and white metal.
US dollar to INR
On why INR is rising against the USD, Gaurang Somaiya, Forex and Bullion Analyst at Motilal Oswal said, “Rupee continued to gain after the Federal Reserve decided to keep rates on hold for the first time after 10 straight increases since March 2022. Dollar weakened sharply against its major crosses and too helped the rupee gain. Yesterday, Euro rose sharply after the ECB policy statement was released. The central bank decided to raise rates by 25ps, highest level in 22 years and left the possibility for more hikes.”
Gold price outlook
On outlook for gold and silver prices, Anuj Gupta of IIFL Securities said, “Further weakness in the US dollar is expected to lend support to the bullion metals. Gold price today has support placed at ₹59,000 and ₹58,700 per 10 gm levels on MCX whereas it has support placed at $1,935 per ounce levels in international market. on higher side, gold is facing hurdle at ₹59,800 and ₹60,500 whereas in international market, yellow metal is facing resistance at $1,980 per ounce levels.”
Anuj Gupta said that silver rate today has resistance at ₹73,500 and ₹75,000 levels on MCX while it has support at ₹71,000 and ₹70,000 per kg levels. In international market, it is facing resistance at $265 and $26 levels whereas it has support at $23 and $22 per ounce levels.
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: 16 Jun 2023, 10:15 AM IST