Gold rate today inched higher after European Central Bank President Christine Lagarde signaled a possible rate hike in upcoming meeting. Gold future contract for August 2023 expiry opened higher at ₹ 60,301 per 10 gm levels and went on to hit intraday high of ₹ 60,351 per 10 gm levels. Gold price today is oscillating around $1,981 per ounce levels, logging around 0.
25 per cent rise in early morning deals at Asian stock market bourses. Likewise, silver rate today opened higher and made intraday high of ₹ 72,999 per kg. In international market, silver price is oscillating around $23.
95 per ounce levels, logging around 0. 30 per cent intraday rise in early morning deals. ECB rate in focus On why gold prices edged higher today, Anuj Gupta, Vice President — Research at IIFL Securities said, “ Gold prices are expected to remain range bound till US Fed’s FOMC meeting scheduled on 15-16 June 2023.
After better-than-expected US job data, market is expecting US Fed rate hike in upcoming meeting and hence investors are slightly cautious and booking profit on every rise. In fact, ECB has also signaled rate hike in its upcoming meeting to counter US dollar rise. ” He said that current rise in gold price today can be attributed to the ECB chief’s hawkish stance on interest rate hike that is expected to counter US dollar against the Euro.
Speaking on gold price outlook, Deveya Gaglani, Research Analyst – Commodities at Axis Securities said, “Examination of the daily chart reveals that prices are currently trading above the 9 and 60 Exponential Moving Averages (EMA). In addition, the Relative Strength Index (RSI) is above its reference line, indicating a robust price momentum. Today, traders and investors will closely monitor the Non-farm Payroll data, which could influence gold prices as the outcome may impact the Federal Reserve’s decision on interest rates.
” Major levels to watch Deveya Gaglani went on to add that a strong resistance for the yellow metal is identified around ₹ 60,700, while support is situated around ₹ 59,800 for the day. On near term support and resistance that gold investors should keep in mind, Anuj Gupta of IIFL Securities said, “Gold price has strong support at ₹ 59,500 per 10 gm levels in near term whereas it is facing hurdle at ₹ 60,800 and ₹ 61,200 per 10 gm levels on the higher side in short term horizon. ” “Silver rate today has support placed at ₹ 71,000 levels whereas it is facing resistance at ₹ 73,000 per kg levels,” said Anuj Gupta.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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More Less Updated: 02 Jun 2023, 09:23 AM IST Topics US Federal reserve IIFL Securities gold price india gold trade OPEN IN APP.