Gold rate today: Following US dollar index slide to 15-month low on easing US inflation, gold price today ascended in early morning deals in Asian and Indian markets. Gold future contract for August 2023 expiry on Multi Commodity Exchange (MCX), yellow metal opened higher at ₹59,230 per 10 gm levels and went on to hit intraday high of ₹59,288 per 10 gm within few minutes of commodity market’s opening. In international market, oscillating around $1,955 per ounce levels.
Likewise, silver rate today opened higher at ₹73,530 per kg levels in early morning deals and went on to hit intraday high of ₹73,810 per kg within few minutes of commodity market’s opening bell today. In international market, silver price is oscillating around $24.10 per ounce levels.
US CPI data puts pressure on US dollar
On why gold and silver prices are rising today, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold and silver prices are rising because US CPI data released yesterday has reported that the US inflation has hit two year low. Du to this, US dollar index has nosedived to 15 months low. Hence, bullion metals are appreciating across globe.”
Commenting upon the US CPI data, Apurva Sheth, Head of Market Perspectives and Research at, SAMCO Securities said, “US CPI Inflation came in at 3% Y-o-Y basis. This is the lowest reading since March 2021. The main reason behind this fall is a high base effect and general fall in prices. With this inflation reading the gap between US interest rates and inflation has widened even further. US interest rates are at 5.25% while inflation is just above Feds comfort level of 2%. We can now comfortably say that the Fed is done with hiking rates in this cycle. This is good news for corporations worldwide who are paying interest cost through their nose. It will be interesting to see what the Fed has to say now in their upcoming meet scheduled on 26 July.”
Anuj Gupta of IIFL Securities said that Gold prices have immediate support in international market at $1,930 per ounce levels whereas it is facing resistance at $1,960 levels. On breaching this hurdle, it may go up to $1,980 levels in near term,” adding, “On MCX, gold price has support placed at 58,700 levels and on the higher side, it is facing resistance at ₹59,350 per 10 gm. On breaching this resistance, gold price on MCX may go up to ₹59,800 in near term.”
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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Updated: 13 Jul 2023, 10:47 AM IST