Gold rate today trades tepid as US Dollar Index regains 102 mark. Buy or wait?
2 min read 24 Mar 2023, 10:57 AM ISTGold rate today is in $1,980 to ₹2,010 per ounce range, say experts
PremiumGold rate today witnessed profit booking in early morning session as US dollar appreciated against the Indian National Rupee (INR) and the Dollar Index sustained above the psychological 102 levels. Gold future contract for April 2023 on Multi Commodity Exchange (MCX) opened with a downside gap at ₹59,490 per 10 gm and went on to hit intraday high of ₹59,546 per 10 gm within few minutes of commodity market's opening bell. However, due to rise in US dollar rates, gold price lost its shine and went on to hit intraday low of ₹59,405 levels in early morning deals.
According to bullion market experts, gold price today is under profit-booking pressure as the US dollar has witnessed relief rally after hitting 7-week low on Thursday. They said that gold rate today is sustaining above $1,990 per ounce levels in early morning session and is now in $1,980 to 42,010 per ounce range. They advised traders to buy gold at around ₹59,300 levels for the intraday target of ₹59,900 per 10 gm on MCX.
Speaking on the reason for correction in gold price today, Anuj Gupta, Vice President — Research at IIFL Securities said, "After hitting 7-week lows on Thursday deals, US dollar is witnessing some relief rally and Dollar Index has once again regained the psychological 102 mark. However, this relief rally in the US dollar is limited and it may correct further and may breach its current support placed at 100 levels. So, gold investors are advised to maintain buy on dips strategy and avoid taking any short position in current scenario."
US dollar to INR
Speaking on INR vs USD, Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas said, "We expect Indian Rupee to trade with a slight negative bias on weak Dollar amid dovish FOMC may support risk assets. Global equities may also recover on dovish FOMC which may be supportive for the domestic currency. However, selling pressure from foreign investors and month Dollar demand from importers may cap sharp gains in Rupee. USDINR spot price is expected to trade in a range of 81.60 to 82.70."
Outlook for bullions
On gold price outlook, market expert Sugandha Sachdeva said, "The overall trend is positive for gold, but it would be difficult to surpass the ceiling of the $2,000 per ounce mark for gold in a hurry, and only a weekly closing above the same would lead to further advances in the precious metal. Downside support rests at ₹58,500 per 10 gm mark and then ₹58,000 per 10 gm."
Asked about the silver price outlook, Sugandha Sachdeva said, "Silver prices have a key hurdle around $23.5 per ounce or ₹70,500 per kg and further upside is likely only in case this level is breached on a weekly closing basis."
Near term strategy
On suggestion for gold traders, Anuj Gupta of IIFL Securities said, "One can buy gold at around ₹59,300 per 10 gm levels for intraday target of ₹59,900 levels maintaining stop loss at ₹59,050 levels."
On outlook for silver rate today, Anuj Gupta said, "One can buy silver at around ₹69,800 per kg levels for near term target of ₹71,000 per kg mark. However, one must maintain strict stop loss at ₹69,250 levels."
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.
