According to commodity market experts, gold prices are down in early morning session on Friday as market is expecting tit-for-tat from the US Fed meeting. They said that dollar index is up on the speculation of US Fed increasing interest rate when it sits for the scheduled meeting on 27th July 2022.
Speaking on the reasons for gold prices today trading weak in early morning session, Anuj Gupta, Vice President — Research at IIFL Securities said, "Gold prices are trading weak today despite ECB raised interest rates by surprise 50 bps as market fears tit-for-tat from the US Fed meeting scheduled at the end of this month. In fact, euro is also trading weak today and dollar index is trading strong with near 0.04 per cent gains in early morning deals."
Anuj Gupta said that spot gold price is trading in the range of $1680 to $1735 levels and it may break its current support and go up to $1650 per ounce levels in near-term.
Advising gold investors and traders to maintain sell on rise strategy till US Fed meeting happens, Anuj Gupta of IIFL Securities said, "Spot gold is facing resistance at $1735 per ounce levels and those who have buy position in gold should think of booking profit in this range. However, those who want fresh position in the precious yellow metal can take short position in gold around $1735 levels and book profit around $1690 levels. At MCX, gold price may go down to ₹49,300 per 10 gm levels in near term."
Speaking on gold price outlook, Pritam Patnaik, Head - Commodities, HNI & NRI Acquisitions at Axis Securities said, “Gold prices have come under renewed attack as the dollar index tries to retest its recent highs. The investors seem to be nervous about the deluge of impending rate hikes across all major economies. The gold bulls will have to wait for some more time to start value buying. Prices will remain soft to negative, as all rallies will be possibly sold into."
On Thursday, gold prices fell to lowest in nearly a year, buffeted by an elevated US dollar. In domestic market, MCX gold rates hit ₹49,958 per 10 gram, the lowest since February 2022.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
