Gold Prices Today: Yellow metal to slide towards Rs 48,870 under strong dollar, rising yields, hawkish Fed

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Gold dropped to its lowest level since April 2021, hurt by elevated US Treasury yields and a firm dollar, as bets of another hefty Fed rate hike eroded bullion's appeal. Spot gold dropped 1.9 percent to $1,664.46 an ounce. US gold futures fell 2.02 percent to $1,662.30 an ounce.

At 9:41am, gold contracts were trading 0.11 percent lower on the Multi-Commodity Exchange (MCX) at Rs 49,260 for 10 grams and silver was down 0.05 percent at Rs 56,388 a kilogram.

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Prathamesh Mallya, AVP- Research, Angel One

Spot gold on Thursday saw cracked down nearly 2 percent, ending at 1663.7$ per ounce, dropping to its lowest levels since April 2020, as sentiments were affected by elevated U.S. Treasury yields and a firm dollar, as bets of another hefty rate hike by the US Federal Reserve eroded the yellow metal's appeal. Interest rate hikes increase the opportunity cost of owning non-yielding metal, despite the fact that gold is seen as a safe investment during economic turmoil.

The recent increase in the US dollar index, rising US Treasury yields, and the hike in US inflation figures have all worked together to keep gold buyers largely inactive. Following the Fed's policy meeting next week, the markets have fully priced in an interest rate increase of at least 75 basis points, and maybe even up to 100 basis points. We expect gold to trade lower towards Rs 48,870 levels, a break of which could prompt the price to move lower to Rs 48,450 levels.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold prices traded weak on Friday with spot gold prices at COMEX were trading near $1662 per ounce in the morning trade. The yellow metal extended loses on hawkish FED on larger rate hike expectations. The stronger dollar index also weighed on investment sentiments in gold.

We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1650 and resistance at $1690 per ounce. MCX Gold October support lies at Rs 48900 and resistance at Rs 49800 per 10 grams.

Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart

Gold prices have breached the key support levels and extended the previous day's losses. Investors in precious metals are jittered over yesterday's better US Unemployment claims and Retail sales data that increases the aggressive monetary policy outlook. Any rise in precious metals prices could be a good selling opportunity today. Gold has resistance at Rs 49500 and support at Rs 49000. Silver has resistance at Rs 57300 and support at Rs 55500.

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