Gold rate today under pressure. Experts recommend buy as US treasury yield retraces from 16-year high | Mint
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Business News/ Markets / Commodities/  Gold rate today under pressure. Experts recommend buy as US treasury yield retraces from 16-year high
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Gold rate today under pressure. Experts recommend buy as US treasury yield retraces from 16-year high

Gold rate today may rebound from support levels as 10-year US bond yiled has come below 5%, say experts

MCX gold rate today has support placed at ₹60,000 and ₹59,000 respectively, say experts.Premium
MCX gold rate today has support placed at 60,000 and 59,000 respectively, say experts.

Gold rate today: On account of 10-year US bond yield retracing from 16-year higher levels of 5 per cent and dip in US dollar against major global currencies, commodity market experts have recommended investors to buy precious bullion metals in current dip. They said that weakness in the US dollar and 10-year US Treasury yield is expected to enable gold and silver prices to bounce back from its support levels.

Gold price today opened lower at 60,.478 per 10 gm levels and went on to hit intraday low of 60,436 levels within few minutes of comodity market's opening bell during Wednesday morning deals on Multi Commodity Exchange (MCX). In international market, spot gold price is oscillating around $1,973.50 per ounce levels.

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Likewise, silver rate today opened lower on MCX at 71,619 per kg levels and went on to hit intraday low of 71,588 per kg levels during early morning deals on Wednesday. In international market, silver price is oscillating around $22.95 per ounce levels.

Looking at the dip in gold and silver prices as profit-taking trigger, Alex Kuptsikevich, the FxPro senior market analyst said, "Gold is experiencing profit-taking after an impressive rally following the escalation in the Middle East. This week's opening with a gap down was a sign that the market had built considerable profit-taking demand. The gap was closed during Monday, but the decline continued on Tuesday.

US bond yield under pressure

Advising ‘buy on dips’ strategy in current gold and silver price fall, Anuj Gupta, Head — Commnodity & Currency at HDFC Securities said, “Gold and silver price fall should be seen as buying opportunity by investors as 10-year US bond yield has come below 5 per cent after hitting 16-year high on Monday. US dollar index has also come under 106 levels and these factors are going to support pull back rally in gold prices in near term."

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Anuj Gupta of HDFC Securities went on to add that US dollar has fallen against major global currencies as US Fed chairman has hinted rate pause in upcoming US Fed meeting in November 2023.

Important levels to watch

"MCX gold rates have immediate support placed at 60,000 per 10 gm levels whereas it has crucial support now placed at 59,000 levels. In international market, gold price today has immediate support at $1,960 per ounce levels whereas it has crucial support placed at $1,935 per ounce levels," said Anuj Gupta of HDFC Securities.

On important levels in regard to silver rate today, Anuj Gupta said, "Silver price today looks positive and it is facing resistance at 75,000 per kg levels whereas it is facing crucial resistance at 78,000 per kg levels. In international market, it is facing hurdle at $24.50 per ounce levels."

Anuj Gupta of HDFC Securities maintained that festival season in India is on and Diwali 2023 is fast approaching, which is expected to spurt demand for gold and silver metal.

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.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Commodity News and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
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Published: 25 Oct 2023, 10:13 AM IST
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