Gold, silver prices: Analysts expect positive trend in gold prices today
Analysts expect a pause in the US Fed’s interest rate tightening cycle at the upcoming FOMC meeting
- Jun 6, 2023,
- Updated Jun 6, 2023 11:09 AM IST
Gold prices on the Multi Commodity Exchange (MCX) opened on Tuesday at Rs 59,896 per 10 grams and hit an intraday low of Rs 59,863. However, analysts expect a positive trend in gold prices. In the international market, gold prices hovered around $1,961.25 per troy ounce, higher than the previous day, when it was $1,947.24 per troy ounce, after having increased by 0.07 per cent.
Similarly, silver opened on Tuesday at Rs 71,971 per kg and witnessed a sharp decline in the early trading. The price of silver in the international market hovered around $23.55 per troy ounce.
Anuj Gupta, Vice President of IIFL Securities, said gold traded higher on Monday and closed 0.4 per cent at Rs 59,848 levels. On the international spot market, it was trading at $1,961. Gold rose on Monday due to lesser buying and because of the strengthening in crude oil prices. Gold prices also increased because of expectations that the US Federal Reserve would pause interest rates hikes at the upcoming meeting of the Federal Open Market Committee. “Today we are expecting a positive trend in the prices. I see strong support at Rs 59,500 levels and then Rs 59,200 levels, and resistance at Rs 60,100 and then Rs 60,400 levels. One can buy around Rs 59,500 levels with a stop-loss of Rs 59,200 and for the target of Rs 60,100–60300 levels. Gold may test $1,975–1,980 levels soon,” added Gupta.
Manav Modi, analyst, commodity and currencies at Motilal Oswal Financial Services Ltd (MOFSL), echoed the sentiment. Gold prices were steady in the early trade after the US services sector data bolstered hopes that the US Fed might pause its tightening cycle. The dollar index was flat, hovering around 104 mark, after inching lower in early session, while the US 10-year yield eased to 3.6 per cent. After a change in comments from US Fed officials last week, market participants started discounting a pause in the June Fed meeting, supporting metal prices. Market participants are pricing in a more than 75 per cent probability of a pause in next meet. On the data front, ISM services sector barely grew in May as new orders slowed, pushing a measure of prices paid by businesses for inputs to a three-year low, which could aid the Fed’s fight against inflation. Factory orders were reported lower than expected, further supporting bullion. Indicative of sentiment, SPDR holdings rose 0.15 per cent to 939.56 tonnes. Broader trend on COMEX could be in the range of $1935-1965 and on domestic front prices could hover in the range of Rs 59,400–60,100
Gold prices on the Multi Commodity Exchange (MCX) opened on Tuesday at Rs 59,896 per 10 grams and hit an intraday low of Rs 59,863. However, analysts expect a positive trend in gold prices. In the international market, gold prices hovered around $1,961.25 per troy ounce, higher than the previous day, when it was $1,947.24 per troy ounce, after having increased by 0.07 per cent.
Similarly, silver opened on Tuesday at Rs 71,971 per kg and witnessed a sharp decline in the early trading. The price of silver in the international market hovered around $23.55 per troy ounce.
Anuj Gupta, Vice President of IIFL Securities, said gold traded higher on Monday and closed 0.4 per cent at Rs 59,848 levels. On the international spot market, it was trading at $1,961. Gold rose on Monday due to lesser buying and because of the strengthening in crude oil prices. Gold prices also increased because of expectations that the US Federal Reserve would pause interest rates hikes at the upcoming meeting of the Federal Open Market Committee. “Today we are expecting a positive trend in the prices. I see strong support at Rs 59,500 levels and then Rs 59,200 levels, and resistance at Rs 60,100 and then Rs 60,400 levels. One can buy around Rs 59,500 levels with a stop-loss of Rs 59,200 and for the target of Rs 60,100–60300 levels. Gold may test $1,975–1,980 levels soon,” added Gupta.
Manav Modi, analyst, commodity and currencies at Motilal Oswal Financial Services Ltd (MOFSL), echoed the sentiment. Gold prices were steady in the early trade after the US services sector data bolstered hopes that the US Fed might pause its tightening cycle. The dollar index was flat, hovering around 104 mark, after inching lower in early session, while the US 10-year yield eased to 3.6 per cent. After a change in comments from US Fed officials last week, market participants started discounting a pause in the June Fed meeting, supporting metal prices. Market participants are pricing in a more than 75 per cent probability of a pause in next meet. On the data front, ISM services sector barely grew in May as new orders slowed, pushing a measure of prices paid by businesses for inputs to a three-year low, which could aid the Fed’s fight against inflation. Factory orders were reported lower than expected, further supporting bullion. Indicative of sentiment, SPDR holdings rose 0.15 per cent to 939.56 tonnes. Broader trend on COMEX could be in the range of $1935-1965 and on domestic front prices could hover in the range of Rs 59,400–60,100