BackGold, silver rate today under pressure as US dollar continues to gain strength
Gold rate today: US dollar index has climbed above 107 levels and it has sustained above this mark after the US goverment managed to avert shutdown on October 1, 2023
PremiumGold rate today: On account of US dollar gaining strength against major global currencies, gold price today remained under the sell off heat during early morning deals on Wednesday. Gold future contract for December 2023 expiry on Multi Commodity Exchange (MCX), opened lower at ₹56,237 per 10 gm levels and went on to hit intraday low of ₹56,225 levels. In international market, gold price is oscillating around $1,822 per ounce levels.
Likewise, silver rates today opened lower at ₹67,024 per kg levels and went on to hit intraday low of ₹66,901 per kg levels. In spot market, silver prices are oscillating around $21 per ounce levels.
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Why gold prices are under pressure?
Speaking on the reason for gold and silver prices being under pressure, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “Gold and silver prices are under pressure as US dollar has been gaining strength against the major global currencies. US dollar index has climbed to 11-month high after hitting 107 levels. It has sustained above this psychological level and hence bullions are expected to witness sell on rise asset for some time."
On why gold prices are under pressure, Deveya Gaglani, Research Analyst - Commodities at Axis Securities said, “Gold prices broke the strong support zone of ₹57,000 level and closed below it, signalling it is under the bear grip. Rising bond yields and a strong dollar index have dented the sentiments of precious metals. The possibility of multiple rate hikes reduced its appeal as it is a non-yielding asset. The near-term trend is looking unfavourable for prices. Prices are expected to trade with a negative bias as long as the ₹57,500 level is intact on the upside."
Major levels to look at
Anuj Gupta of HDFC Securities said that spot gold price has immediate support placed at $1,800 levels whereas its crucial support is now placed at $1,770 per ounce levels. On MCX, gold price has immediate support placed at ₹56,000 and ₹55,300 per 10 gm levels.
Anuj Gupta went on to add that silver rate today has crucial support placed at $20 per ounce levels whereas it is facing hurdle at 21.50 per ounce levels. On MCX, silver rate today has immediate support placed at ₹65,500 and ₹63,000 per kg levels.
US dollar to INR
Speaking on outlook for US dollar (USD) against the Indian National Rupee (INR), Anuj Choudhary - Research Analyst at Sharekhan at BNP Paribas said, “We expect Rupee to trade with a negative bias as hawkish fedspeak and a strong Dollar may continue to put downside pressure on Rupee. Risk aversion in global markets may further weigh on the domestic currency. However, decline in crude oil prices and any selling of Dollars by RBI may support Rupee at lower levels. Traders may take cues from JOLTS job openings data from US. Investors may remain cautious ahead of RBI’s monetary policy meeting later this week. USDINR spot price is expected to trade in a range of ₹82.80 to ₹83.70."
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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