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Business News/ Markets / Commodities/  Gold rates today trade flat despite dip in dollar index. Buy, sell or wait?
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Gold rates today trade flat despite dip in dollar index. Buy, sell or wait?

Gold price today has immediate support placed at ₹56,800 and ₹56,400 levels, say experts

Gold prices may go up to $1,920 levels once it breaches the immediate hurdle at $1,890 levels in international market, say experts.Premium
Gold prices may go up to $1,920 levels once it breaches the immediate hurdle at $1,890 levels in international market, say experts.

Gold rates today: Despite dip in US dollar rates and dollar index post-US Fed chief Jerome Powell signaling less hawkish stance on interest rate hike, gold prices trade flat in early morning deals on Wednesday. The yellow metal future contract on MCX for April 2023 witness profit booking after hitting intraday high of 57,259 per 10 gm in intraday trade. Yesterday dollar index witnessed profit-booking post-US Fed chief Jerome Powell dropped signals about less hawkish stance on interest rate hike. After the Jerome Powell's speech, US dollar erased its early gains in late Tuesday session. In fact, the dollar index has opened today in red zone by losing around 0.09 per cent on Wednesday.

According to commodity market experts, gold prices have immediate support placed at 56,800 and 56,400 levels in domestic market whereas it has support placed at $1,860 and $1,835 per ounce levels in international market. They said that on upper side, gold price is facing hurdles at 57,700 and 58,100 levels whereas in global spot market, it is facing hurdle at $1,890 and $1,920 per ounce levels. However, they maintained that overall bias is positive and any dip in precious metal should be seen as buying opportunity.

Speaking on gold prices in Delhi markets, Saumil Gandhi, Senior Analyst — Commodities at HDFC Securities said, "Spot gold prices in the Delhi markets traded at 57,275 per 10 grams, up 128 per 10 gram. Gold prices should consolidate in range for the day as investors eyeing Federal Reserve Chair Jerome Powell's speech later in the day to gauge the US central bank's monetary policy path after latest stronger non-farm payrolls data."

Advising 'buy on dips' strategy to gold investors, Anuj Gupta, Vice President — Research at IIFL Securities said, "Gold rates today on MCX is trading flat as US dollar rates have declined and at the same time Indian National Rupee (INR) has ascended. This rise in Indian Rupee has worked as taper for the gold rush. However, the precious bullion metal price is overall positive and one should maintain buy on dips strategy and avoid taking any short position."

On important pivot levels in regard to gold prices, Anuj Gupta of IIFL Securities said, "On MCX, gold has support places at 56,800 and 56,400 levels whereas it is facing resistance at 57,700 and 58,100 levels. In international market, gold prices have support placed at $1,860 and $1,835 levels whereas it is facing resistance at $1,890 levels." He said that overall sentiment is positive and on breaching $1,890 per ounce levels, gold prices may go up to $1,920 levels. He advised domestic investors to buy gold if the precious yellow metal comes around 57,000 levels on MCX.

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. Download The Mint News App to get Daily Market Updates & Live Business News.
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Published: 08 Feb 2023, 11:31 AM IST
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