Gold pulls back from all-time highs as US dollar pulls back from one-year low

According to commodity market According to experts, the US dollar corrected after aggressive comments from a US Fed official, but added that gold closing above the $2,000 level in the international market is a good sign. However, he added that further fall in the US dollar index would put the precious yellow metal under pressure. He said that gold prices in the international market remained soft near the levels of $1,980 and $1,945, while the yellow metal is likely to witness some weakness on the MCX. 59,700 per 10 grams and then 58,500 per 10 gram mark.

the US dollar is in focus

Market expert Sugandha Sachdeva on the reasons for the return of gold prices from historical high said, “During the week, gold prices in the international markets touched a new record high of Rs 61371 per 10 grams and around $ 2050 per ounce. However, The rebound in the dollar index at the end of the week from the multi-month low of a sharp 100.80 odd levels somewhat dampened the luster of the yellow metal, taking it into marginally negative territory for the week. It basically The comments were aggressive from one of the Fed officials. Supported strength in the greenback across the board.”

Sugandha further said gold prices initially edged higher on a 5% rise in US consumer prices in March, the lowest level in 2 years, even as core prices continued to remain higher. In addition, the US producer price index, a measure of wholesale inflation, declined to 2.7% from 4.9% in February, indicating that price pressures, although they remain elevated, are now easing from four-decade highs. Are. There are a lot of expectations that the US Fed will finally end its rate hike cycle, which is causing the dollar index to decline and increasing the appeal of gold.

Speaking on the surprisingly accommodative stance of some US Fed officials, Nirpendra Yadav, Senior Commodity Research Analyst Swastik Investmart “According to the minutes of the FOMC meeting, an economic recession is expected by the end of this year due to the banking crisis, which could last for the next two years. However, Fed officials are still in favor of 0.25 per cent,” it said. Increase in interest rate as inflation is still running high.”

gold price outlook

Expecting some volatility in gold price in the near term, Sugandha Sachdeva said, “There are some signs of mild exhaustion in the ongoing rally in gold and any further fall in dollar index will be negative for gold prices, they Relief is likely.” But 59,700 per 10 grams and then 58,500 per 10 grams mark, which took support near $1,980 and then $1,945 an ounce in the international markets. Meanwhile, a close above $2,000 an ounce is a positive sign, and the price setting in domestic markets indicates a break above. 61,500 per 10 grams will be a good sign for the precious metal and may take it towards higher levels 62,500 per 10 gram mark in the coming days.

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