Gold Prices Today: Inflationary worries, slowdown concerns to support yellow metal despite impending interest rate hike

Gold, Gold Prices

Gold prices were largely unchanged on Tuesday in the international markets as investors stayed away due to a softening inflation outlook and impending interest rate hikes from top central banks. Spot gold was flat at $1,809.45 per ounce, as of 0305 GMT. US gold futures rose 0.5% to $1,809.90.

At 9.36am, gold contracts were trading higher by 0.11 percent at Rs 52,180 for 10 grams on the Multi-Commodity Exchange (MCX) while silver added 0.49 percent to Rs 58,774 a kilogram.

COMEX gold trades near $1810/oz supported by lower bond yields, inflation concerns and increasing growth worries and renewed virus concerns in China. However, weighing on price is monetary tightening stance of Fed and other central bank, firmness in US dollar and continuing ETF outflows and possible slowdown in Indian demand due to import duty hike. Gold fell sharply in last few days but has managed to hold near $1800/oz level which shows some buying interest however a sustained rise is unlikely given the focus on FOMC minutes and US non-farm payrolls data, said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

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Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart

Due to the US market holiday, Gold and Silver prices remained firm yesterday on a thin trading day. The energy prices are gaining buying momentum, supporting the precious metals prices. On the other hand, the hike in Gold customs duty by India accelerated the buying sentiment. The US dollar index gained marginally but the benchmark US Treasury yield remained down in the previous session, supporting the prices of precious metals. Day trends in gold and silver are likely to remain upside. Gold prices may move towards Rs 52700 levels while it has support at Rs 51600. Silver has support at Rs 58000 and resistance at Rs 59800.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold prices traded firm on Tuesday with spot gold prices at COMEX were trading 0.21% up near $1811 per ounce in the morning trade. Gold prices have kept steady range after falling below $1800 per ounce last week supported by weaker dollar. However, rate hike expectations has capped upside in the yellow metal despite of inflationary worries and slowdown concerns.

We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1800 per ounce and resistance at $1830 per ounce. MCX Gold August support lies at Rs. 51900 and resistance at Rs. 52500 per 10 grams.

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