Why are gold, silver rates falling today? US debt ceiling bill has the answer
- Gold rate today has immediate support placed at ₹59,500 levels on MCX, say experts
Gold rate today witnessed sell off pressure in early morning deals on Multi Commodity Exchange (MCX). Gold price today opened lower at ₹60,057 per 10 gm levels and went on to hit intraday low of ₹59,834 per 10 gm levels within few minutes of commodity market opening on Thursday. In early morning session in Asian stock market today, the yellow metal price is oscillating around $1,964 per ounce levels.
Silver rate today remained under pressure in early morning session as the white metal opened lower at ₹71,857 per kg levels and went on to hit intraday low of ₹71,711 on MCX. In international market, silver price today is around $23.50 per ounce levels.
Why gold rate today under sell off heat?
On why gold and silver price is under sell off heat on MCX, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold and silver rates today are under sell off heat as the US House of Representatives have passed US debt ceiling bill five days ahead of the deadline. Apart from this, US job data has come better than market expectations, which has also fueled fear of US Fed rate hike, leading to profit booking trigger in the bullion metals.”
On why gold prices are under pressure today, Navneet Damani, Senior VP – Commodity Research at Motilal Oswal said, “Top congressional Republican Kevin McCarthy urged members of his party to support a bipartisan deal to lift the $31.4 trillion U.S. debt ceiling, and a key party hardliner said he would likely support the measure in a critical procedural vote. Fed funds futures traders now see the Fed as more likely to hike interest rates next month than leave them unchanged, amidst positive economic data and ease off in debt ceiling concerns. Probability chart shows about more than a 60% chance for a 25 bps rate hike which was till last week in favour of a pause.”
Important levels to watch
On important levels to watch for gold and silver rates today, Anuj Gupta, Vice President — Research at 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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