Gold price in India dropped sharply on Thursday, tracking global cues. On the Multi-Commodity Exchange (MCX), gold futures tumbled 0.20 per cent to Rs 50,800 for 10 grams at 0905 hours on June 23. Silver also witnessed a sharp fall on Wednesday. The precious metal future plummeted 0.63 per cent to Rs 60,266 for a kilogram. Gold and silver prices remained under pressure after the United States Federal Reserve chief Jerome Powell had mentioned aggressive rate hikes to tame inflation giant.
In the international market, the gold price inched lower on Thursday. Spot gold was down 0.2 per cent at $1,832.91 per ounce by 0239 GMT. US gold futures fell 0.2 per cent to $1,834.30. Spot silver dipped 0.5 per cent to $21.28 per ounce.
Powell said on Wednesday that the pace of future rate hikes will depend on whether and how quickly inflation starts to decline. The central bank of the United States will assess the interest rates on a meeting by meeting basis. Earlier this month, the US Federal Reserve raised its benchmark interest rate by 75 basis points to a range of 1.5 per cent to 1.75 per cent to fight against surging prices. It was biggest hike in nearly three decades.
The US dollar index and US Treasury yields slipped after Powell’s testimony and capped downside. Moreover, investors were nervous that rate hikes by the Federal Reserve could push the US economy into recession, dulling demand for fuel.
Gold Price Future
“International spot and COMEX gold prices have started marginally weaker on Thursday morning in Asian trade despite the Fed was fully committed to reining in inflation and would try not to spark a recession in the process. However, downside could remain capped supported by a weaker dollar and US Treasury yields. Today’s range of COMEX August gold is $1825.17-$1850.97,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Domestic gold futures prices could start marginally weaker on Thursday morning, tracking a negative start in the overseas markets. Reflecting current sentiments, SPDR Gold ETF Trust fund said its holdings fell 0.19 per cent to 1,071.77 tonnes on Wednesday from 1,073.80 tonnes on Tuesday. Today’s range of MCX August gold is Rs 50,570-51,200,” he added.
“Gold and Silver prices eased on Wednesday post the Fed chairman’s testimony. Bullions traded in a narrow range as investors awaited fresh cues from top central banks on their monetary policy plans, especially from the US Federal Reserve. Geopolitical uncertainty and rising concerns of economic slowdown are likely to support the precious metals. Gold has support at $1828-1816, while resistance is at $1852-1861. In INR terms gold has support at Rs 50,540–50,210, while resistance is at Rs 50,980–51,240,” said Rahul Kalantri, Vice President commodities, Mehta Equities Ltd.
Silver Price Outlook:
“Today’s range of COMEX July silver is $21.192-$21.662. Domestic silver futures prices could start weaker on Wednesday morning. Today’s range of MCX silver July is Rs 60,140-61,130,” Iyer added.
“Silver has support at $21.10-20.85, while resistance is at $21.65-21.95. In INR terms silver has support at Rs 60,120-59,550, while resistance is at Rs 61,380–61,710,” Kalantri mentioned.