Gold prices were trading over half a per cent down in India on Thursday, mirroring global trends, where yellow metal hovered near a two-month low. On Multi Commodity Exchange, gold June futures fell 0.6 per cent or Rs 318 to Rs 50,881 per 10 gram, against the previous close of Rs 51,199. Silver July futures tanked 1.4 per cent or Rs 910 to Rs 64,380 per kg. Globally, yellow metal prices weakened towards a two-month trough hit in the previous session, as the U.S. dollar steadied near five-year highs, hurting demand for greenback-priced bullion, according to Reuters. Spot gold was down 0.1% at $1,885.20 per ounce. U.S. gold futures were also down 0.1% at $1,886.40.
Jigar Trivedi, Manager — Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers
Gold and silver have been falling sharply these days owing to a strong dollar. Price action has been significant in recent days. A run of declines means that gold has given up all of the gains it saw courtesy of the Russian invasion of Ukraine. The US will release Q1 GDP and weekly jobless claims in the second session. Silver has seen a sharp sell-off in the precious metal market, so we don’t deny a possibility of a rebound however, the undertone is bearish hence we recommend to sell on every bounce. MCX Gold June futures may weaken to Rs. 50,900 per 10 gram.
Tapan Patel, Senior analyst — Commodities, HDFC Securities
Gold prices traded weak on Thursday with COMEX Spot gold prices were trading near $1881 per ounce in the morning trade. MCX Gold June contract opened lower near Rs. 51040 per 10 gram following weak global cues. Gold prices fell below $1890 support levels as the dollar rallied to pre pandemic levels to the highest since March 2020 levels. The traders and investors are weighing on a larger rate hike in the next US FOMC meeting. The higher inflation, geopolitical risk and mass COVID testing in China may limit some downside in gold. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1870 and resistance at $1900 per ounce. MCX Gold June support lies at Rs. 50800 and resistance at Rs. 51300 per 10 gram.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold slipped to a more than two-month trough as the dollar rallied on expectations of aggressive monetary policy tightening by the U.S. Federal Reserve. The dollar index charged to its highest level since January 2017 touching the levels of around 103, fuelled by expectations that the U.S. central bank will be more hawkish than peers and safe-haven flows fanned by concerns over slowing growth in China and Europe. Market participants are discounting more than one 50bps rate hike this year, to calm the inflationary expectations. A cautious approach is advised ahead of the important Fed policy statement scheduled next week; wherein comments from Fed Governor, inflation and growth forecast will be very important to watch for. Market participants today will keep an eye on the important U.S. GDP data; which if reported better than expectations could further put pressure on the gold and silver prices. Broader trend on COMEX could be in the range of $1855-1905 and on domestic front prices could hover in the range of Rs 50,500-51,300
