Today’s Gold Price: The yellow metal began taking profits during the weekend session as the dollar index remained above the psychological 102 level and the US dollar recovered from its seven-week low. On the Multi Commodity Exchange (MCX), a gold futures contract for April 2023 expires at 59,310 per 10 grams, representing a weekly loss of 0.18 percent. Gold closed at $1,976.90 an ounce on the international spot market, down 0.58 percent from last week’s close of $1,988.50.
Experts in the commodity market claim that the recent rise in US dollar rates is to blame for the decline in gold prices. The US dollar gained ground in recent sessions on fresh data on the US current account deficit (CAD) and new home sales, after hitting a seven-week low last week. Given the US central bank’s commitment to contain inflation and not cut rates this year, he stated, market participants anticipate only one more rate hike this year. In addition, he stated that the retreat from the upper hurdle may continue and that gold is anticipated to remain in the range of $1,920 to $2,010 per ounce. But when asked about the strategy for gold investors, he said that they should keep “buying on dips” and not take short positions because breakouts above $2,000 per ounce are likely to happen soon. As the Indian National Rupee (INR) is anticipated to depreciate, gold prices may rise once more. will continue to be weak shortly.
US dollar rate in center
Remarking on the explanations for the fall in gold costs in the previous week, Anuj Gupta, VP Exploration, IIFL Protections said, “Subsequent to moving to new highs on reinforcing of US dollar following increase in US computer aided design and different information, gold costs recuperated. The US dollar recovered from its seven-week low as a result of this. Profit-booking in the precious yellow metal was sparked by the rise in the American currency. He went on to say that the rate of the US dollar is expected to remain a major factor in the near future that causes gold prices to fluctuate.
Anuj Gupta of IIFL Protections said that gold today took quick help close $1,950 levels, while the vital help for the valuable yellow metal is set at $1,920, while $2,000 is the critical help at gold costs in the worldwide spot market. It is expected to remain a significant obstacle.
“Indian rupee declined today due to weak domestic markets and a positive dollar,” said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, when asked about the reasons for the rise in the value of the dollar. The domestic currency was also affected by persistent FII outflows. Gains in dollars The appeal of a safe haven amid weak currencies and stocks in Asia and Europe The dollar appreciates as a result of new data on the US current account deficit and new home sales. The Bank of England lowers interest rates by 25 basis points to 4.25 percent, the highest level in 15 years.
“We anticipate that the Indian rupee will trade against risk aversion on global markets with a negative bias and a positive dollar.” The rupee may also be under pressure from selling pressure from FIIs and month-end dollar demand from importers. However, the rupee may receive less support from falling crude oil prices.” level. In anticipation of US durable goods orders and PMI data, traders may remain cautious. Anuj Chowdhary of Sharekhan by BNP Paribas stated, “USDINR spot price is expected to trade in a range of 81.80 82.80.”
“The overall trend for gold is positive, but it will be difficult for gold to cross the $2000/oz mark quickly, and only a close above it will lead to further gains in the precious metal,” according to the outlook for the gold price. Rests negative support.” However, Sugandha Sachdeva, a market expert, stated, “58,500 per 10 grams, and then 58,000 per 10 grams.”
Sachdeva went on to say that even though the dollar is starting to recover from the 102-odd levels, it should be ready for volatile moves because it could hurt precious metals after a big rally in the past. Is.
“Some banks in the United States have gone bankrupt as a result of continuous interest rate hikes, and interest Rates are likely to escalate further due to the deteriorating financial condition of many banks,” Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart, advised bullion traders and investors. Investors’ desire for safe haven investments has increased in response to the possibility of a financial crisis, which has led to a steady rise in the prices of gold and silver. Has been.
Anuj Gupta of IIFL Protections encourages gold financial backers to keep up with ‘purchase on plunges’ methodology, expressing, ‘Purchase on plunges ought to be kept up with as gold costs in the worldwide spot market are probably going to support above $2,000 levels. Another round of assembly can begin from here. It is anticipated that it will remain within the $1,920-2,000 range until then.”
Disclaimer: The opinions and suggestions presented above are those of individual analysts or brokerage firms. Before making any investment decisions, we recommend that investors conduct due diligence with licensed professionals.
