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Business News/ Markets / Commodities/  Gold Price Today: Rates inch up in early trade; should you buy or wait?

Gold Price Today: Rates inch up in early trade; should you buy or wait?

Gold price today: Gold prices were capped in the global markets due to the dollar's gains amid the negotiations over raising the US debt ceiling.

Gold has been one of the best asset classes in 2023 so far. (Agencies)Premium
Gold has been one of the best asset classes in 2023 so far. (Agencies)

After suffering a fall in the previous session, gold prices traded higher in early trade in the domestic futures market on May 17 following positive global cues and healthy spot market demand.

The yellow metal was steady in global markets amid US debt ceiling talks while a stronger dollar capped the gains of the precious metal. 

As reported by Reuters, “Gold prices steadied on Wednesday below the $2,000 mark as investors fretted over the outcome from the US debt-limit negotiations, with a firmer dollar keeping prices in check."

In the previous session, gold prices fell by 220 to 60,807 per 10 grams in futures trade as speculators reduced their positions. Experts pointed out that gold and silver prices fell after downbeat Chinese economic data which increased fear of moderating consumer and industrial demand for precious metals from China.

Besides, stronger dollar and bond yields amid the debt ceiling uncertainty in the US also weighed on gold prices.

Rahul Kalantri, VP of Commodities at Mehta Equities observed that mixed US economic data and strong dollar continue to weigh on precious metal prices.

"Gold has support at $1,980-1,965 while resistance is at $2,005-2,015. Silver has support at $23.55-23.42, while resistance is at $24.05-24.22. In the Indian rupee terms, gold has support at 59,860-59,680, while resistance is at 60,420-60,590. Silver has support at 72,020-71,550, while resistance is at 73,150–73,620," said Kalantri.

MCX Gold June 5 futures opened at 60,333 per 10 gram and traded with mild gains. It was trading 0.24 per cent higher at 60386 around 10 am IST.

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Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week and continue to face resistance at higher levels.

As per Jain, gold has support at $1,984-1,968, while resistance at $2,010-2,022 per troy ounce. Silver has support at $23.60-23.35, while resistance is at $24.20-24.50 per troy ounce. At MCX, gold is having support at 60,000-59,770 and resistance at 60,480-60,660 while silver is having support at 72,000-71,550 and resistance at 73,000-73,650.

"We suggest selling gold on the rise around 60,500 with a stop loss of 60,850 for the target of 60,000 and also suggest selling silver on the rise around 73,200 with a stop loss of 73,850 for the target of 72,000," said Jain.

Anuj Gupta, Vice President - Research at IIFL Securities suggested selling MCX Gold June futures at 60,600 with a stop loss of 60,850 and the target price of 60,000. He suggested selling MCX Silver July contracts at 73,100 with a target price of 72,000 and a stop loss of 73,600.

Gold has been one of the best asset classes in 2023 so far and barring intermittent profit-booking, the yellow metal may continue enjoying investors' favour this year mainly because of the uncertainty around global economic growth.

Read more: Gold price outlook: Gold up 10% in 2023 so far; will the yellow metal continue shining in medium 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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Published: 17 May 2023, 10:12 AM IST
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