Gold, silver rate today under pressure as US dollar climbs to two month high
1 min read 19 May 2023, 09:19 AM ISTGold rate today has immediate support placed at $1,945 per ounce levels in international market
PremiumGold rates today are on course of logging biggest weekly loss in last three and half months as US dollar climbed to near two month highs. After losing 0.75 per cent on Thursday, gold June future contract on Multi Commodity Exchange (MCX) today opened higher at ₹59,766 per 10 gm but remained in a tight range. In international market, gold price today is quoting around $1,963 per ounce levels with some marginal gains during early session in Asian stock market.
Likewise, silver rate today opened higher at ₹72,336 per kg levels on MCX but the white precious metal also remained in tight range. In international market, silver price is up 0.60 per cent and it is quoting around $23.60 per ounce.
On why gold and silver rates are falling today, Navneet Damani, Senior VP – Commodity Research at Motilal Oswal said, “Gold price continue to inch lower as the dollar advanced after hawkish comments from US Federal Reserve officials raised doubts over a slowdown in interest-rate hike in the coming meetings. Few fed governors continue to maintain a hawkish stance, amidst concerns regarding inflation, which is still far away from their target of 2 per cent."
What's fueling US dollar
“After hawkish commentary by some US Fed officials US dollar made sharp upside move and came close to near two month higher levels. Dollar Index regained the psychological 103 levels," said Anuj Gupta, Vice President — Research at IIFL Securities.
In early morning deals on Friday, Dollar Index is quoting 103.380.
Anuuj Gupta of IIFL Securities said that gold price in international market has immediate support placed at $1,945 per ounce levels whereas silver price has immediate support placed at $23 per ounce.
US debt ceiling news in focus
Markets see a positive end to the debt ceiling talks as recent commentary has been about the progress being made, and given yields and the dollar are all going up at the same time, gold is pulling back, Ilya Spivak, head of global macro at Tastylive said.
(With inputs from Reuters)
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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