Gold prices in India edged higher on Wednesday, tracking global peers. On the the Multi-Commodity Exchange (MCX), gold price future jumped 0.15 per cent to Rs 50,272 for 10 grams at 0925 hours on June 15. Silver price also rose on Wednesday. The precious metal future climbed 0.70 per cent to Rs 59,919 for a kilogram on June 15.
In the international market, gold prices increased on Wednesday as investors awaited a more-than-expected interest rate hikes by the US Federal Reserve to tame the rising inflation. Spot gold was up 0.1 per cent at $1,810.59 per ounce as of 0051 GMT. However, US gold futures fell 0.1 per cent to $1,811.30. Spot silver tumbled 0.1 per cent to $21.06 per ounce.
Benchmark US 10-year Treasury yields edged off a multi-year peak. US dollar index also eased ahead of the Federal Open Market Committee meeting scheduled on June 15. Amid mounting fears of an impending recession, the analysts expect that US central bank will hike interest rates by 75 basis points instead of 50 basis points mentioned earlier.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.46 per cent to 1,063.94 tonnes on Tuesday from 1,068.87 tonnes on Monday.
Gold, Silver Prices Outlook: What Analysts Say
“Stronger dollar and higher treasury yields are mounting pressure on gold prices. After the US CPI data comes at a 40-year high, more hawkish rate hike by Fed is on cards to curb the inflation. Gold prices are witnessing selling pressure in anticipation of a big rate hike by the Fed. Buy Zone Above – Rs 50,350 for the target of Rs 50,700. Sell Zone Below – Rs 50,000 for the target of Rs 49,700,” said said Dr Ravi Singh, vice president and head of research, ShareIndia.
Commenting on yellow metal price outlook, Sriram Iyer, senior research analyst at Reliance Securities said, “International spot and COMEX gold prices have started with small gains on Wednesday morning in Asian trade as the dollar and the bond yields ease ahead of the Fed meeting tonight. Today’s range of COMEX August gold is $1790.43-$1844.83. Domestic gold futures prices could start flat to marginally higher this early Wednesday morning, tracking a slightly positive start in the overseas markets. A weaker rupee could cap downside. Today’s range of MCX gold August is Rs 50,000-Rs 50,855.”
As per technical chart gold and silver are trading at demand zone again, we can see a good upside movement in coming future as momentum indicator RSI also indicating the same in hourly as well as daily chart. So traders are advised to create fresh buy positions near given support levels, traders should focus important technical levels given below for the day: August Gold closing price Rs 50,195, Support 1 – Rs 50,100, Support 2 – Rs 49,950, Resistance 1 – Rs 50,350, Resistance 2 – Rs 50,500. July Silver closing price 59501, Support 1 – Rs 59,300, Support 2 – Rs 59,000, Resistance 1 – Rs 60,112, Resistance 2 – Rs 60,500,” said Amit Khare, AVP- research Commodities, Ganganagar Commodity Limited.
“International spot and COMEX silver prices have started with small gains on Wednesday. Today’s range of COMEX July silver is $20.538-$21.568. Domestic silver futures prices could start flat to marginally higher this early Wednesday morning. Today’s range of MCX silver July is Rs 59,100-60,900,” Iyer added.
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