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Gold Prices Today: Yellow metal to remain range-bound on hawkish US Fed, slowdown fears

Prices of precious metals may remain down today and selling pressure is expected if price rises towards resistance levels, said Nirpendra Yadav, senior commodity research analyst at Swastika Investmart.

June 30, 2022 / 09:51 AM IST
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Representative Image

Gold firmed on Thursday in international markets as US Treasury yields dipped but the metal faces its worst quarter since early 2021 as the dollar cemented its place as the safe-haven asset of choice, amid top central banks adopting aggressive tactics against runaway inflation. Spot gold was up 0.1% at $1,818.31 per ounce by 0115 GMT. US gold futures also firmed 0.1% to $1,819.70.

At 9.41am, gold contracts were trading flat at Rs 50,728 for 10 grams on the Multi-Commodity Exchange (MCX) while silver added 0.13 percent to Rs 59,140 a kilogram.

Precious metals prices remained volatile during the policy panel yesterday. Silver remained down while gold gave up all the gains. Dollar, which moves opposite to gold prices, gained nearly 0.44% while the benchmark US Treasury yield slipped 3%. Prices of precious metals may remain down today and selling pressure is expected if price rises towards resistance levels. Gold has resistance at Rs 51300 and support at Rs 50400 per 10 grams. Silver September contract has resistance at Rs 61400 and support at Rs 58800, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.

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

Gold prices couldn’t hold on to the upswing towards $1835 witnessed in yesterday’s day of trade. The US GDP data came in at -1.6% as against Street expectations of -1.5%, thereby confirming growth slowdown and recession fears. This helped gold prices jump, but only momentarily.

The yellow metal went on to drop to its lowest levels in the last two weeks as central bankers remained firm in their resolve to battle inflation using rate hikes, even at the cost of short-term economic slowdown. The Fed chairman yesterday repeated his latest pledge to battle inflation with readiness to announce another 0.75% rate hike if needed.

Gold prices will continue to remain range-bound owing to positive and negative factors playing on the metal's price outlook. A breach below $1815 per ounce could send the metal towards $1805 and if this level too is taken out, $1800 - $1790 will be on the cards.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold prices held steady on Thursday with COMEX spot gold prices flat near $1820 per ounce in the morning trade. Gold prices are stuck in the narrow range on mixed global cues. Prices are not budging from the current range over Fed hike expectations and slowdown fears. The dollar index and US bond yields were also steady after US GDP numbers.

We expect gold prices to trade sideways to down for the day with COMEX spot gold support at $1810 and resistance at $1830 per ounce. MCX gold August futures support lies at Rs 50500 and resistance at Rs 51000 per 10 grams.

Rahul Kalantri, VP Commodities, Mehta Equities

Gold futures posted a third straight session of loss on Wednesday, with prices settling at their lowest in just over two weeks due to strength in the dollar and comments from Federal Reserve chairman Jerome Powell which suggested that the central bank will continue to tighten monetary policy.

Gold has support at $1808-1795 per ounce while resistance is at $1828-1840. Silver has support at $20.48-20.20, while resistance is at $21.20-21.50. In rupee terms gold has support at Rs 50,370–49,110 per 10 grams, while resistance is at Rs 50,940–51,120. Silver has support at Rs 58,780-58,150, while resistance is at Rs 60,220–60,610.

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Sandip Das
first published: Jun 30, 2022 09:51 am