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Business News/ Markets / Commodities/  Gold, silver rate today trade tepid amid rate-pause bets from RBI monetary policy

Gold rates today opened sideways amid high bets of interest rate pause in Reserve Bank of India (RBI) policy meeting, scheduled from 6th to 8th June 2023. MCX Gold price today opened higher at 59,869 per 10 gm but soon came under profit booking pressure and hit intraday low of 59,813 levels. In international market, gold price around $1,959 levels with an intraday loss of around 0.10 per cent.

Silver rate today opened lower at 71,971 per kg levels on MCX and went on to hit intraday low of 71,951 levels within few minutes of commodity market's opening bell today. In international market, silver price is oscillating around $23.57 per ounce levels with an intraday gain of around 0.25 per cent.

On why gold and silver rate today are trading sideways, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold rates today are trading sideways as investors are awaiting clear picture on interest rate regime. As RBI policy meeting has begun today, bets are quite high on interest rate pause. Other reason for bullion being sideways is rising uncertainty on US Fed's rate hike jitters as US dollar is flirting with its two months higher levels."

On gold prices retrace from record highs, Navneet Damani, Senior VP – Commodity Research at Motilal Oswal said, “Gold prices edged lower on the back of positive economic data points, higher US Dollar and Yields, offsetting support from the prospects that the Federal Reserve would pause its rate hikes this month. Dollar index was seen closing above the 104 mark in the previous session; while US 10Y yields is hovering above 3.7 per cent, weighing on safe haven assets. US Jobs market continues to remain tight as the JOLTS, ADP private payroll and the non-farm, all were reported better than expectations."

On US Fed rate hike, Motilal Oswal expert said, “According to CME Fed- watch tool, probability for a pause in around 75 per cent and 25 per cent for a 25 bps rate hike in the June Fed meeting. Physical gold demand slowed in India last week as a recovery in domestic prices prompted buyers to postpone purchases, while weakening of the Chinese currency underpinned premiums in the top consumer."

Key levels to watch

On important levels to watch for gold and silver rates today, Anuj Gupta of IIFL Securities said, “Gold rate today has immediate support placed at $1,935 per ounce levels whereas on MCX, it has support placed at 59,500 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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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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Updated: 06 Jun 2023, 09:47 AM IST
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