Gold price and silver price was sharply higher on Tuesday amid safe-haven buying interest as investors turned risk averse ahead of the U.S. Fed meeting on interest rates later in the day on Wednesday.
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Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading flat on Tuesday, while the silver rate is up 0.19%. On Multi Commodity Exchange, gold June futures were trading at Rs 60,715 per 10 grams, up Rs 87 or 0.14%. Silver May futures were trading higher by Rs 145 at Rs 76,393 per kg on MCX.
Globally, the yellow metal prices held steady above the key $2,000 level on Wednesday, while investors turned their attention to the U.S. Federal Reserve’s interest rate-hike verdict due later in the day. Spot gold held its ground at $2,016.29 per ounce after rising more than 1% in the previous session, as yields dropped on renewed fears of contagion in the U.S. banking sector. U.S. gold futures were up 0.1% at $2,026.10.
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Gold prices higher on safe-haven buying
“Gold price and silver price was sharply higher on Tuesday amid safe-haven buying interest as investors turned risk averse ahead of the U.S. Fed meeting on interest rates later in the day today. Besides, the U.S. Treasury yields also dropped on flight-to-quality buying amid higher anxiety in the marketplace. U.S. Treasury Secretary Janet Yellen has also warned that the U.S. government could be in default on some of its payments by June 1 if the debt limit is not increased.
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Gold has support at $2004-1992 while resistance is at $2025-2040. Silver has support at $25.05-24.82, while resistance is at $25.47-25.62. In INR terms gold has support at Rs 60,320-60,150, while resistance is at Rs60,780, 60,920. Silver has support at Rs74,320-73,750, while resistance is at Rs75,850–76,230,” said Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities.
Gold prices gain as investors remain cautious ahead of rate hike verdict
“International and domestic gold and silver prices rose on Tuesday on fresh banking jitters. Shares of U.S. regional lenders tumbled, while Treasury yields fell as the collapse of First Republic Bank triggered investor concerns about the health of other midsized lenders. The Dollar also remained subdued and lifted bullion prices on Tuesday’s session. However, investors remained cautious ahead of the Fed’s monetary policy decision. The FOMC kicked off its two-day meeting, where it is mostly expected to raise rates by 25-bps and markets priced in about 15% odds of a rate cut in June, and not requiring another hike this year. One factor aiding this view is the cooling jobs numbers. The number of job openings in the United States dropped by 384,000 to 9.6 million in March 2023, the lowest level since April 2021 and below the market’s expectation of 9.775 million,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.
