Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading flat on Wednesday despite positive global cues, while the silver rate is down 0.3%. On Multi Commodity Exchange, gold April futures were trading at Rs 55,773 per 10 grams, down Rs 57 or 0.1%. Silver May futures were trading lower by Rs 196 at Rs 64,345 per kg on MCX.
Globally, the yellow metal prices were lower on Thursday as the dollar firmed, with a fresh set of global economic data cementing investor worries that global interest rates would stay higher for longer than expected, according to Reuters. Spot gold was down 0.2% at $1,833.57 per ounce after hitting a one-week peak on Wednesday. U.S. gold futures slipped 0.3% to $1,840.50.
“High interest rates make gold less desirable as an inflation hedge and make it more costly to hold the non-yielding asset. Although new orders increased from a more than 2-1/2-year low, there were hints that factory activity was rising even though U.S. manufacturing shrank for a fourth consecutive month in February. The U.S. Fed’s rate hike trajectory will likely see the dollar’s resurgence, eventually limiting the upside in the yellow metal,” said Prathamesh Mallya, AVP – Research, Non-Agri Commodities and Currencies, Angel One.
Gold trades steady after gaining some momentum
“Gold is trading steady after gaining some momentum in yesterday’s session after a slew of economic data added to investor concerns that interest rates globally could stay higher for longer than expected. U.S. economic data this week were a bit disappointing as U.S. consumer confidence data and Manufacturing PMI number missed the estimates and weighed on the Dollar Index. U.S. Fed officials were divided over whether recent high inflation data and positive jobs market data would require even more restrictive interest rates, or just patience in maintaining tight monetary policy for a longer period of time.
“Fed officials’ hawkish statements continued to cap gains for safe haven assets, as they raise expectations for further rate hikes in future Fed meetings. This is supporting an up-move in U.S. yields, U.S. 10-year Treasury yields hit 4% for the first time since November. Focus today will be on EU CPI. Broader trend on COMEX could be in the range of $1810-1850 and on domestic front prices could hover in the range of Rs 55,200- 56,100,” said Manav Modi, MOFSL.