Gold price retraces ₹4000 from record high as US dollar climbs to 3-month peak
3 min read . Updated: 09 Mar 2023, 09:48 AM IST
Premium- Gold rate today nosedived around ₹4,000 below its life-time high of ₹58,847 per 10 gm
Gold rate today: On account of US dollar rate climbing to three month high, gold rates today nosedived below ₹55,000 per 10 gm on MCX and retraced to the tune of ₹4,000 from its life-time high of ₹58,847 per 10 gm levels. Silver rates today opened lower and hit intraday low of ₹61,580 per kg in early morning deals, nosediving around ₹16,500 below its life-time high of ₹77,949 per kg.
According to stock market experts, gold and silver prices are under pressure today due to strength in US dollar. Dollar Index reclaimed 105 levels on Wednesday and today it is sustaining above 105 levels, which has put other assets including gold under the profit booking pressure. They said that gold price today is standing at immediate support of $1,810 per ounce in international spot market whereas on MCX, it is standing at immediate support of ₹54,500 levels. Experts went on to add that on breaching current support gold prices may go down towards $1,790 and $1,760 levels in international market whereas on MCX we can see gold price hitting ₹54,000 and ₹53,800 per 10 gm levels if it breaches its current support of ₹54,500 per 10 gm.
Experts said that silver price today is standing at support of ₹61,000 pe kg and ₹58,000 per kg levels on MCX whereas in international market it is standing at support of $19.50 and $18.80 per ounce levels whereas it is facing resistance at $21 and $21.70 per ounce levels. Commodity experts maintained that both gold and silver are standing at its support levels and any rise from current levels should be seen as relief rally only as bullions are expected to remain under pressure till US Fed's FOMC meeting outcome becomes public.
Rally US dollar rate
Speaking on the reason for dip in gold and silver prices today, Anuj Gupta, Vice President — Research at IIFL Securities said, "Both gold and silver prices have fallen today as US dollar has gained further strength ahead of US Fed's FOMC meeting scheduled on 21st to 22nd March 2023. Dollar Index regained 105 levels and it is sustaining above this levels with more strength and hence most of the assets including gold is under pressure as investors are moving their money from other assets to US dollar."
Speaking on US dollar rally, Marc Despallieres, Chief Strategy and Trading Officer at Vantage said, "The US dollar was steady on Thursday but down from three-month highs reached earlier on Wednesday after Federal Reserve Chairman Jerome Powell offered no major surprises on his second day of testimony before Congress and as investors waited for jobs data on Friday. The DXY index steadily hovered in a range from 105.4 to 105.8 on Wednesday, despite falling to a daily low of 105.36 during Powell’s speech."
Investment strategy
Advising sell on rise to gold and silver investors, Anuj Gupta of IIFL Securities said, "In international market, gold may go down towards $1,790 and $1,760 per ounce levels after breaching its current support of $1,810 levels. Similarly, silver price may go down towards $19.50 and $18.80 per ounce levels. On MCX, gold prices have immediate support placed at ₹54,500 and ₹54,000 per 10 gm levels. It may go below ₹54,000 levels as well in ₹53,800 range. On upper side, gold is facing resistance at ₹55,700 and ₹56,300 levels while in international market, gold price is facing resistance at $1,860 and $1,890 per ounce levels."
Anuj Gupta said that silver rate today has immediate hurdle at $21 and $21.70 per ounce levels whereas on MCX, silver prices have immediate hurdle at ₹64,000 per kg levels. He advised gold and silver investors to keep these pivot levels and mind and maintain 'sell on rise' strategy till US Fed's FOMC meeting outcome becomes public. He said that any rise in gold and silver price from current levels should be seen as an opportunity to sell around resistance levels.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
