Gold rate today trades tepid as investors await more cue after Chinese data
2 min read 31 May 2023, 09:36 AM ISTGold rate today has immediate support placed at $1,920 per ounce levels whereas on MCX, immediate support for gold price is placed at ₹59,000 per 10 gm levels, say experts
PremiumGold rate today edged lower as US dollar continues to sustain at 10-week highs. Gold future contract on Multi Commodity Exchange (MCX) opened at ₹59,946 per 10 gm levels and went on to hit intraday low of ₹59,923. However, the precious yellow metal made intraday high of ₹59,984 per 10 gm levels. In international market, gold price today is oscillating around $1,958 per ounce levels.
Silver rate today opened at ₹71,034 per kg levels and went on to hit intraday high of ₹71,072 per kg levels. However, profit booking soon triggered and the white metal went on to hit intraday low of ₹70,951 levels within few minutes of commodity market's opening on Wednesday.
Why gold rate today edged lower
Speaking on the reason for gold rate today trading tepid, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold prices are expected to remain sideways as investors are awaiting concrete cue from the US debt ceiling talks as they have become cautious after the disappointing Chinese manufacturing data. On Tuesday, China manufacturing data for the month of May 2023 shrank for second straight month."
Expecting sideways trend in gold and silver prices to continue further, Navneet Damani, Senior VP – Commodity Research at Motilal Oswal said, “Gold price continue to inch lower hovering near a two-month low, as optimism over a US debt ceiling deal along with a firm dollar dented metal’s appeal. U.S. President Biden shared his optimism regarding the debt ceiling deal, he said that he feels good about prospects for passage by Congress of the deal that he reached with House of Representatives Speaker Kevin McCarthy. However, until and unless there is an official vote and announcement regarding this deal, market participants will remain cautious."
Pointing towards US Fed rate hike fear that has also worked as tapper for the bullions, Motilal Oswal expert said, “US Fed officials are also actively keeping a hawkish tone with respect to interest rates, and that has to some extent offset safe-haven flows around the US debt ceiling situation as higher interest rates dull the appeal for zero-yield bullion. We could witness higher volatility today as US & UK resume after a holiday, yesterday. Focus today will be on the US Consumer confidence data; which if is reported better than estimates, it could further support the dollar."
Gold, silver price levels to watch on Tuesday
On levels to watch for gold and silver rates today, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold rate today has immediate support placed at $1,920 per ounce levels whereas on MCX, it has support placed at ₹59,000 per 10 gm levels. Similarly, silver rate today has immediate support placed at $20.80 per ounce levels in international spot market whereas it has support placed at ₹70,000 per kg levels on MCX."
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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