Business News/ Markets / Commodities/  Gold rate today near 2.6% down from life-time high. Buy now or wait for further dip?

Gold rate today: Amid speculation of US Fed rate hike by 25 bps, gold price feel the heat of profit booking in early morning deals in domestic and international spot market. Gold future contract for June 2023 on MCX went off 21 per 10 gm and hit 59,743 levels in morning deals, around 1,600 per 10 gm below its life-time high of 61,371 per 10 gm levels.

Similarly, silver future contract for May 2023 on MCX opened lower and hit intraday low of 74,053 per kg. In international market, silver rate today is under pressure and it is 0.36 per cent down in early morning session at Asian stock market today. Silver rate today in international market is around $24.60 per ounce.

On reason for dip in gold and silver price today, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold price is trading tepid in early morning deals as market is expecting 25 bps US Fed rate hike in FOMC meeting. Due to this, we witnessed some rise in US dollar rates on Monday that pulled yellow metal above $2,000 levels in evening deals on Monday."

“Spot gold is flattish around $1982 as the metal consolidates ahead of the US FOMC monetary policy decision and Friday's nonfarm payroll report," said Praveen Singh, Associate VP, Fundamental currencies and Commodities, Sharekhan by BNP Paribas.

US Fed meeting

Anuj Gupta said that after a sharp rally we may saw a range bound movement in gold and silver due to lack of fresh triggers for the bullions. However, upcoming FOMC Meeting and decision on interest rates may provide fresh trigger to the gold and silver. If they decide to increase interest by more than 0.25 basis point then we will see corrections in gold and silver otherwise both will trade with positive bias.

On levels that matters in regard to gold price today, market expert Sugandha Sachdeva said, “In the international markets, prices need to surpass the immediate hurdle of $2,010 per ounce to continue with their upwards momentum, or else further correction will likely set in. Immediate support on the other hand is pegged at $1,975 per ounce or 59,500 per 10 gm mark, while key support for coming days resides at 58,500 per 10gm mark or $1,945 per ounce mark."

Gold, silver price outlook

Unveiling investment strategy in regard to gold and silver, Anuj Gupta said, “For the week ahead, Silver has immediate support at $24.20 /$23.50 ( 73,000/ 70,500) levels and resistance at $25.50 /$26.00 ( 77,000/ 78,500) levels. We are expecting a range bound session with positive bias in the coming week and we are recommending buy on support levels in gold and silver. If gold prices are able to breach $2,010 levels then it may test $2,030 levels and if silver is able to breach $26 levels then it may test $27 to $28 levels."

Anuj Gupta maintained that US FOMC outcome and US dollar rate would continue to dominate gold and silver price in near term.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Updated: 02 May 2023, 10:28 AM IST
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