Gold, silver rate today trade tepid as US dollar climbs to ten week high on US debt ceiling optimism
2 min read 29 May 2023, 09:44 AM ISTGold rate today has immediate support placed at ₹59,100 levels on MCX whereas it has support placed at $1,935 mark
PremiumGold rate today opened higher but continue to trade tepid during early morning deals. Gold future contract for June 2023 expiry opened at ₹59,406 per 10 gm and went on to hit intraday high of ₹59,407 levels within few minutes of commodity market opening today. However, the precious yellow metal soon witnessed profit booking and gold price tumbled from its Monday highs. It soon made an intraday low of ₹59,271 per 10 gm. In international market, gold prices continue to oscillate around $1,975 per ounce levels, losing around 0.05 per cent from its Friday close in international spot market.
Similarly, silver rate today opened higher at ₹71,550 per kg but soon tumbled and hit intraday low of ₹71,111 per kg levels. In international market, silver price is oscillating around $23.222 per ounce levels, losing near 0.35 per cent during early morning deals.
What's pulling down gold, silver price today
On why gold and silver rate today is trading tepid Anuj Gupta, Vice President — Research at IIFL Securities said, "Gold and silver rate today is under pressure as US dollar has surged to 10-month high in last few sessions. This rise in US dollar can be attributed to the rise in optimism for breakthrough in US debt ceiling talks. Market is expecting that expected breakthrough may bring US economy on track as investment will start taking place in terms of US dollar."
Expecting further downside trend in bullion metals, Deveya Gaglani, Research Analyst - Commodities at Axis Securities said, "Gold prices extended their bearish trend for the third consecutive day, with the settlement around 59372, breaching the crucial support zone at the ₹59,500 level. Notably, the daily chart reveals a fresh multi-month low, accompanied by trading below the 20 and 60 Exponential Moving Averages (EMA). Furthermore, the Relative Strength Index (RSI) is approaching the 40 level, indicating strong downward momentum in the market. Adding to the negative sentiment, the probability of a rate hike in the upcoming June meeting has increased to 60 per cent, which could potentially serve as a catalyst for further downside pressure on gold."
On important levels in regard to gold and silver prices, Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors said, "Gold prices have support at the ₹59,100 to ₹59,200 per 10 gm zone, or $1935 per ounce mark, and are likely to witness a bounce back towards ₹60,400 per 10 gm in the coming days; otherwise, a breach of this support zone can lead to a fall towards the ₹58,500 10 gm mark. As for silver, prices have strong support at the ₹69,500 per kg mark, and if that holds, expect buying interest to resume in coming days."
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.
