Gold, silver rate today under pressure after ease in US inflation. Should you buy?
2 min read 12 May 2023, 10:58 AM ISTGold rate today has immediate support placed at $2,010 levels and on breaching this level, gold price may go down towards $1,980 to $1,975 per ounce levels, believe experts
PremiumGold rate today further tumbled after losing to the tune of more than half per cent in the domestic market on Thursday. Gold future contact for June 2023 expiry on Multi Commodity Exchange opened lower at ₹60,795 per 10 gm and went on to hit intraday low of ₹60,750 levels within few minutes of commodity market opening today. In international market, gold price today is down by around 0.20 per cent and it is close to its current immediate support of $2,010 levels.
Likewise, silver rate today remained under the sell off heat as silver future contract on MCX for July 2023 expiry opened lower at ₹73,675 per kg and went on to hit intraday low of ₹73,045 per kg. In international spot market, silver price today is near 0.60 per cent lower and it is quoting near to $24 per ounce levels.
Why gold, silver prices are falling?
On why gold and silver rate today are under pressure, Deveya Gaglani, Research Analyst — Commodities at Axis Securities said, “Weakness in gold and silver price today can be attributed to rise in Dollar Index after better-than-expected US inflation data. Furthermore, a set of fresh economic data released from the United States served to underscore current trends of lower inflation and a slower labor market. This has led to a growing expectation that the Federal Reserve may pause its tightening cycle in the upcoming meeting."
Axis Securities expert went on to add that the producer inflation rate dropped more than anticipated in April, lending credence to hopes of subdued prices following a cooler-than-forecasted CPI print for the period.
On pivot levels that gold investors should remember, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold price has immediate support placed at $2,010 levels and on breaching this level on closing basis, next support for the yellow metal lies at $1,975 levels." On MCX, gold rate today has support placed at ₹59,500 levels, he said.
On outlook for gold and silver prices, Deveya Gaglani of Axis Securities said, “Overall, the current outlook for MCX gold and silver prices are moderately bearish, given the recent developments in the US economy and their potential implications for monetary policy."
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.
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