Home/ Markets / Commodities/  Gold Price Today: Rates dip in early trade; should you buy or wait?

Gold prices traded with significant losses in early deals in the domestic futures market on Tuesday (May 23) amid weak global cues as investors focused on the US debt ceiling talks.

Gold prices were subdued in the international markets as the debt ceiling talks on Monday failed to conclude on a positive note.

As reported by Reuters, "Biden and House Speaker Kevin McCarthy could not reach an agreement on Monday (May 22) on how to raise the US government's $31.4 trillion debt ceiling with just 10 days before a possible default that could sink the US economy, but pledged to keep talking."

Moreover, the dollar's rise also weighed on gold prices. As per media reports, the US dollar rose to a six-month high level against the Japanese yen on expectations that interest rates will stay higher for an extended period. A higher dollar makes gold less affordable for overseas buyers and hits its demand.

MCX Gold June 5 futures traded 0.60 per cent lower at 59,900 per 10 gram around 9:15 am. It had closed 0.19 per cent lower at 60,262 per 10 gram in the previous session.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week amid US debt negotiations and volatility in the dollar index. He believes gold could face steep resistance at higher levels.

"Gold has support at $1,964-1,950, while resistance at $1,988-2,004 per troy ounce. Silver has support at $23.55-23.20, while resistance is at $24.20-24.50 per troy ounce," said Jain.

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"At MCX, gold is having support at 60,000-59,770 and resistance at 60,480-60,720 while silver is having support at 72,100-71,550 and resistance at 73,300-73,850. We suggest selling gold on the rise around 60,450 with a stop loss of 60,720 for the target of 59,900 and also suggest selling silver on the rise around 73,100 with a stop loss of 73,750 for the target of 72,000," said Jain.

As per brokerage firm Motilal Oswal Financial Services, MCX Gold may trade rangebound for the session. For gold, support is at 59,700-59,500 whereas resistance is at 60,150-60,400 level, Motilal Oswal said.

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: 23 May 2023, 10:19 AM IST
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