Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices fell over half a per cent in India on Tuesday, on the back of flat rates in global markets. On Multi Commodity Exchange, gold April futures were trading 0.7 per cent or Rs 357 down at Rs 51,214 per 10 grams. Silver May futures were ruling at Rs 67,580 per kg, down Rs 525 or 0.8 per cent. Globally, yellow metal prices were flat as the dollar held firm at a three-week high hit in the previous session and yields climbed higher offsetting hopes for peace talks between Russia and Ukraine to be held this week. Spot gold was little changed at $1,925.71 per ounce, and U.S. gold futures were down 0.8% at $1,924.20.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold retreated on pressure amidst higher U.S. Treasury yields, a firmer dollar and updates regarding supply concerns ahead of Russia-Ukraine peace. Benchmark 10-year bond yields hit their highest since April 2019 on the day, buoyed by bets of aggressive interest rate hikes by the Federal Reserve to fight soaring inflation; while the dollar was hovering around its three week highs. Russia stayed put with their demands and attacks, while retaliation from Ukraine also remained strong. Along with this, concerns from China regarding the surge in Covid cases are also increasing distress in the market. Market participants today will keep an eye on U.S. Consumer confidence data which if reported lower than expectation it could support the metal prices. Broader trend on COMEX could be in the range of $1900- 1955 and on domestic front prices could hover in the range of Rs 51,050- 51,700.
Pritam Patnaik, Head – Commodities, HNI, and NRI Acquisitions, Axis Securities
A combination of face to face peace engagement between Russia and Ukraine, strong dollar index and higher bond yields have led to the correction witnessed in gold prices. Negotiators from the warring nations of Russia and Ukraine meet this week in Turkey to work out a cease fire and possibly a conflict resolution. While the latter looks improbable in the short term, eking out a cease fire will be a best case scenario for now. Globally, the probability of a resolution looks highly unlikely, given the past meetings have never yielded any thing concrete. One will have to wait and watch this space. With the dollar index holding on to its three week high levels and bond yields rising , we have seen some profit booking in a non-interest bearing asset like gold. That said, the risk on mode that the market has adopted, could change quickly if the negotiations go south. If the gold prices breach the $1900 mark it could slip till $1875, else it could rebound to around $ 1940-45 in the next few trading sessions. Prices will meet strong support around the $ 1900 levels
Bhavik Patel, Commodity & Currency Analyst, Tradebulls Securities
Over the past few days, gold and silver have attempted to break out to the upside but have failed. The next logical step is a return to support, $1,900 for gold and $24.5 for silver. The pattern suggests a test or a breakdown through those levels. Higher US Treasury yields and strong US dollar is headwinds for gold. Money managers lowered their speculative gross long positions in Comex gold futures by 13,008 contracts to 152,589. At the same time, short positions fell by 1,603 contracts to 37,457. While speculative positioning has dropped, demand for gold-backed exchange-traded products remains solid. Global gold ETFs have seen ten weeks of consecutive inflows. Expect gold to remain weak today with support around 51000-50800 while resistance at 51500.
Ravi Singh, Vice President & Head of Research, Share India Securities
Gold is showing profit booking on account of gains in the US bond yield and strength in the dollar. However, gains in global energy prices and downbeat U.S. pending home sales, durable goods and core durable goods orders data released last week supported precious metals. Gold prices may show some more correction this week.
Buy Zone Above – 51700 for the target of 52000
Sell Zone Below – 51300 for the target of 51000
(The views in this story are expressed by the respective experts of the research and brokerage firm. TheSpuzz Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)