Gold prices future in India jumped sharply on Thursday, following global cues. On the Multi-Commodity Exchange (MCX), gold price future gained 0.48 per cent to Rs 50,680 for 10 grams at 0920 hours on June 16. Silver price also witnessed a huge jump. The precious metal future climbed 0.71 per cent to Rs 61,125 for a kilogram on Thursday.
In the international market, gold price eased on Thursday, as dollar recovered slightly after United States Federal Reserve rate hike. Spot gold fell 0.1 per cent to $1,831.63 per ounce, as of 0235 GMT, while US gold futures rose 0.8 per cent to $1,833.40.
The United States Federal Reserve on Wednesday increases its target interest rate by three-quarters of a percentage point to a range of 1.5-1.75 per cent to tackle soaring inflation in the country. It was the biggest rate hike by the US central bank since 1994.”The Committee seeks to achieve maximum employment and inflation at the rate of 2 per cent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 1‑1/2 to 1-3/4 per cent and anticipates that ongoing increases in the target range will be appropriate,” the Federal Open Market Committee said in a statement. The policy-setting committee also projected a slowing economy and rising unemployment in the months to come.
Gold Price, Silver Price Outlook
“MCX gold prices are expected to rise further towards Rs 51,000 for the day primarily due to easing dollar index. Silver prices are expected to take cues from gold prices and may rally towards Rs 62,500 levels for the day,” said ICICI Direct in a note.
“International spot and COMEX gold prices have started with a gap up trade on Thursday morning in Asian trade as the dollar and the bond yields eased. Investors will look to cues from Bank of England meeting and jobs data from the US for further cues. Today’s range of COMEX August gold is $1803.53-$1861.47. Domestic gold futures prices could start higher early this Thursday morning, tracking a positive start in the overseas markets. A slightly stronger rupee could cap upside. Today’s range of MCX gold August is Rs 50,145-51,155,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Gold prices are witnessing indecisiveness as growth worries, geopolitical uncertainty and spiralling inflation are pulling it up whereas firm US dollar and upside in bond yield is eroding gold’s sheen. The Fed’s aggressive rate hike is also on cards, putting pressure on gold prices. Investors are not able to decide whether to buy on dips or short on highs. The indecisiveness in gold may remain for sometime. Buy Zone Near – Rs 50,300 for the target of Rs 50,500
Sell Zone Below – Rs 50,200 for the target of Rs 50,000,” said Dr. Ravi Singh-Vice President and Head of Research-ShareIndia.
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