Gold and silver prices today: Gold steadies after hitting 3-month low, silver declines by Rs 1,500
This follows US Fed Chairman Powell’s comments on possible further rate hikes; markets will also keep a watch on BOE policy meeting, and US weekly jobless claims data
- Jun 22, 2023,
- Updated Jun 22, 2023 11:24 AM IST
Gold prices on the Multi Commodity Exchange (MCX) opened lower on Thursday at Rs 58,613 per 10 grams and hit an intraday low of Rs 58,607. In the international market, prices hovered around $1,932.48 per troy ounce. Meanwhile, silver opened on Thursday at Rs 68,870 per kg and hit an intraday low of Rs 68,807 on the MCX. The price hovered around $22.64 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currencies, MOFSL, said, “Gold steadies after hitting 3-month low helped by a retreat in the dollar, although an uptick in bond yields after US Federal Reserve Chair Jerome Powell’s congressional testimony capped gains.” Powell said the fight against inflation still “has a long way to go”, and added that it made sense to move rates higher at a more moderate pace while reassuring the markets that the economy and banking sector were steady.
Austan D. Goolsbee, the president of the Federal Reserve Bank of Chicago, meanwhile said on Wednesday that the central bank needs more clarity on inflation and the labour market’s trajectory before deciding its next step. The prospect of further increases in US interest rates has weighed heavily on gold over the past month, given that it increases the opportunity cost of holding bullion.
“Focus today also will be on Fed governor’s testimony and a Fed official’s comments. BOE policy meeting where they are expected to raise rates by 25bps and US weekly jobless claims data will also be important,” said Modi.
According to an ICICI Direct report, structurally, gold prices have witnessed a shallow retracement in the last two years, retracing just 50% of their preceding two years’ rally (Rs 31,220–56,018), signalling strength.
After the last four months’ strong up move, some consolidation in gold prices cannot be ruled out in the short term. However, according to the report, gold could hold above last quarter’s low (Rs 49,353) and extend its structural uptrend in coming quarters.
“International gold prices are also in a secular uptrend. Historically, we have observed over the past five decades larger uptrends in international gold prices have usually lasted for four to five years. In the current context, we are in the middle of the current uptrend. We expect markets to maintain the rhythm and continue the uptrend for another few years,” the report said.
Anuj Gupta, Vice President of IIFL Securities, said, “Yesterday gold prices closed lower by 0.16% at 58716 levels on the back FOMC statement that they will increase interest rates this year. They are also saying that the target of 2% inflation is still far, and it will take time to achieve. In the international market, it is trading at $1931 levels per ounce.”
He sees technically Strong support at 58500 levels, then 58200 levels, and resistance at 58800 and 59100 levels. For Today One can sell around 58800-58900 levels with a stop loss of 59100 and for the target of 58500 to 58400 levels. Gupta said, "Gold may test $1925 levels in international markets."
Gold prices on the Multi Commodity Exchange (MCX) opened lower on Thursday at Rs 58,613 per 10 grams and hit an intraday low of Rs 58,607. In the international market, prices hovered around $1,932.48 per troy ounce. Meanwhile, silver opened on Thursday at Rs 68,870 per kg and hit an intraday low of Rs 68,807 on the MCX. The price hovered around $22.64 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currencies, MOFSL, said, “Gold steadies after hitting 3-month low helped by a retreat in the dollar, although an uptick in bond yields after US Federal Reserve Chair Jerome Powell’s congressional testimony capped gains.” Powell said the fight against inflation still “has a long way to go”, and added that it made sense to move rates higher at a more moderate pace while reassuring the markets that the economy and banking sector were steady.
Austan D. Goolsbee, the president of the Federal Reserve Bank of Chicago, meanwhile said on Wednesday that the central bank needs more clarity on inflation and the labour market’s trajectory before deciding its next step. The prospect of further increases in US interest rates has weighed heavily on gold over the past month, given that it increases the opportunity cost of holding bullion.
“Focus today also will be on Fed governor’s testimony and a Fed official’s comments. BOE policy meeting where they are expected to raise rates by 25bps and US weekly jobless claims data will also be important,” said Modi.
According to an ICICI Direct report, structurally, gold prices have witnessed a shallow retracement in the last two years, retracing just 50% of their preceding two years’ rally (Rs 31,220–56,018), signalling strength.
After the last four months’ strong up move, some consolidation in gold prices cannot be ruled out in the short term. However, according to the report, gold could hold above last quarter’s low (Rs 49,353) and extend its structural uptrend in coming quarters.
“International gold prices are also in a secular uptrend. Historically, we have observed over the past five decades larger uptrends in international gold prices have usually lasted for four to five years. In the current context, we are in the middle of the current uptrend. We expect markets to maintain the rhythm and continue the uptrend for another few years,” the report said.
Anuj Gupta, Vice President of IIFL Securities, said, “Yesterday gold prices closed lower by 0.16% at 58716 levels on the back FOMC statement that they will increase interest rates this year. They are also saying that the target of 2% inflation is still far, and it will take time to achieve. In the international market, it is trading at $1931 levels per ounce.”
He sees technically Strong support at 58500 levels, then 58200 levels, and resistance at 58800 and 59100 levels. For Today One can sell around 58800-58900 levels with a stop loss of 59100 and for the target of 58500 to 58400 levels. Gupta said, "Gold may test $1925 levels in international markets."