Gold rate today witnessed sell off heat in both domestic and international market despite rate-pause announcement in the US Fed meeting. Gold price today opened lower at ₹59,210 per 10 gm on Multi Commodity Exchange (MCX) and went on to hit intraday low of ₹58,819 per 10 gm, which turned out three month low of the precious yellow metal in the domestic market. In international market, gold price is oscillating $1,935 per ounce levels, logging near 0.35 per cent intraday loss in early morning deals in Asian stock markets.
Likewise, silver rate today tanked to the tune of 2 per cent in early morning deals on MCX. Silver future contract for September 2023 expiry on MCX opened lower at ₹72,624 per kg levels and went on to hit intraday low of ₹72,339 levels during early morning session. In international spot market, silver rate today is around $23.45 per ounce levels, logging around 1.95 per cent intraday loss in early morning session.
US Fed news in focus
On reason for dip in gold price today, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold and silver prices are falling today because the US Fed has said in its commentary that two possible rate hikes are still possible by the end of 2023. So, the US Fed news from the FOMC meeting is that the central bank of US has kept interest rate unchanged with possible rate hike option in hand.”
Echoing with Anuj Gupta’s views, Deveya Gaglani, Research Analyst – Commodities at Axis Securities said, “The highly anticipated US Fed meeting concluded, resulting in the first pause in the US Fed rates after 16 months. However, the Fed chairman hinted at the potential for two additional rate hikes this year, depending on market conditions and economic data. This announcement had a detrimental effect on Gold prices in the COMEX market, as the dollar index strengthened, further strengthening the bearish sentiment. A robust support zone is observed at around $1920, while resistance is positioned around $1980.”
Anuj Gupta of IIFL Securities said that gold and silver prices are expected to trade with negative bias for few sessions and said that gold price today has major support placed at $1,910 to $1,920 per ounce levels whereas silver rate today has major support placed at $22.80 per ounce levels. On breaching these levels, gold price may go towards $1,885 levels whereas silver rates may go up to $22 per ounce levels.
The US Fed on Wednesday signalled that a stronger-than-expected economy and a slower decline in inflation will result in a likely rise in borrowing costs by another half-a-percentage point by the end of this year.
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: 15 Jun 2023, 10:52 AM IST