Gold, silver rate today trade range-bound as investors await RBI MPC meeting outcome impact
2 min read 08 Jun 2023, 10:10 AM ISTGold rate today has immediate support placed at $1,935 levels whereas on MCX, gold price has support placed at ₹59,200 mark, say commodity market experts
PremiumGold rate today is trading sideways as investors are awaiting final outcome of the Reserve Bank of India (RBI) monetary policy committee (MPC). Though, market is guessing status quo on interest rates, investors are awaiting to see the impact of the rate-pause decision taken at the RBI MPC meeting.
Gold future contract for August 2023 expiry on Multi Commodity Exchange (MCX), opened higher at ₹59,528 per 10 gm but soon hit intraday low of ₹59,471 per 10 gm levels within few minutes of commodity market opening on Thursday. In international market, gold price today is oscillating around 1,946 per ounce levels, logging around 0.30 per cent rise in early morning deals.
Silver rates today opened higher at ₹71,798 per kg levels and went on to hit intraday high of ₹71,945 within few minutes of market opening. In international market, silver price today is oscillating around $23.55 per ounce levels, logging intraday gain of around 0.70 per cent in early morning session.
US Fed meeting in focus
On why gold rates today is trading range-bound, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold and silver rates today trading range-bound due to three major reasons —investors awaiting to see the impact of final outcome of RBI MPC meeting, US Fed meeting scheduled next week and US dollar at two month high." He said that gold and silver prices may continue to trade sideways till US Fed meeting scheduled next week.
On global triggers that may dictate gold and silver price in near term, Deveya Gaglani, Research Analyst - Commodities, Axis Securities said, “Traders are awaiting Jobless claims data later in the evening, which may impact gold prices. Currently, prices are trading below the 20 and 60 Exponential Moving Averages (EMA) on the daily chart. The momentum indicator, RSI, is also positioned below its reference line, indicating weak momentum for prices. However, prices have managed to hold near the ₹59,200 level, which serves as a strong support zone."
"Additionally, prices have retraced from this level multiple times, indicating a demand zone for prices. As long as this mentioned support zone remains intact, it is recommended to consider buying on dips for intraday trading. A strong resistance is placed around the 60,100 level and support is placed around the 59,200 level," Axis Securities expert said.
In RBI MPC meeting, the central bank of India has kept repo rate unchanged at 6.50 per cent, which is in sync with the market expectations. The market was expecting rate-pause from the RBI monetary policy on better-than-expected Gross Domestic Product (GDP) of India for Q4FY23, strong GST collection, softening inflation and other strong micro and macro economic indicators.
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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