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Gold Prices Today: Yellow metal to face headwinds in the near term; US CPI data in focus

With both the dollar index and bond yields holding, gold prices will face some head winds in the near term. That said, the long term up-move remains very much on the cards, said Pritam Patnaik, Head - Commodities, HNI and NRI Acquisitions, Axis Securities.

August 10, 2022 / 09:53 AM IST
Gold, Gold prices

Gold, Gold prices


Gold prices struggled for momentum on August 10 in the international markets, as investors refrained from making big bets ahead of US inflation data, that is expected to influence the pace of Federal Reserve rate hikes.

Spot gold was down 0.1 percent at $1,791.60 per ounce, as of 0127 GMT. US gold futures were down 0.2 percent at $1,808.20.

At 9:32am, gold contracts were trading 0.24 percent lower on the Multi-Commodity Exchange (MCX) at Rs 52,361 for 10 grams and silver shed 0.22 percent at Rs 58,664 a kilogram.

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Pritam Patnaik, Head - Commodities, HNI and NRI Acquisitions, Axis Securities

Gold traders remain a little cautious as they are eagerly awaiting the US CPI data which is due later in the day today, as this data is expected to be the guiding factor for the Feds next policy initiatives, to tackle inflation. The markets exceptions remain split as far as the US inflation data expectations goes. While one set expects the CPI numbers to come in higher, a Reuters poll indicates a lower inflation reading of 8.7 percent in July , as against 9.1 percent in June, with core inflation at 0.5 percent month on month.

With both the dollar index and bond yields holding, gold prices will face some head winds in the near term. That said, the long term up-move remains very much on the cards.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold prices traded steady on Wednesday with spot gold prices at COMEX were trading near $1794 per ounce in the morning trade. The yellow metal traded firm ahead of US inflation data with market expectations of another record in the numbers.

We expect gold prices to trade sideways to trade sideways to up for the day with COMEX Spot gold support at $1780 and resistance at $1810 per ounce. MCX Gold October support lies at Rs. 52100 and resistance at Rs. 52800 per 10 grams.

Ravi Singh, Vice President & Head of Research, Share India

High global inflation, effects on treasury yields and dollar had given some strength to gold prices earlier. However, the cool off in metal prices, recovery in equity markets and stronger dollar is mounting pressure on gold prices. The US inflation data due today may be the key driver of gold trend.

Buy zone near Rs 52200 for target of Rs 52500

Sell zone below Rs 52100 for target of Rs 51800

Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​
Sandip Das
first published: Aug 10, 2022 09:53 am
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