MCX Gold prices slipped marginally on Wednesday, as US Treasury yields and the dollar strengthened on expectations that interest rates are likely to remain high.
Gold Price Today, Gold Price Outlook, Gold Price Forcast: MCX Gold prices slipped marginally on Wednesday, while silver rates ascended 0.13%. On the Multi Commodity Exchange, gold October futures were trading at Rs 59,206 per 10 grams, down by Rs 37 or 0.06%. Silver December futures were trading up by Rs 96 at Rs 73, 541 per kg on the MCX.
Gold prices extended losses to hit their lowest level in a week on Wednesday as US Treasury yields and the dollar strengthened on expectations that interest rates are likely to remain high, according to Reuters. Spot gold was subdued at $1,925.70 per ounce, after posting its biggest one-day loss since August 1 on Tuesday. US gold futures dipped 0.1% to $1,951.
Gold to remain Volatile
“While the yellow metal had seen a strong run-up over the past two weeks, it struggled to make headway in recent sessions despite signs of cooling US economic activity. The dollar gained 0.4% to a more than nine-month high making gold more expensive for other currency holders. China’s services activity expanded at the slowest pace in eight months in August. However, the fall in the price of gold was limited on hopes that the rising interest rate regime could be ending,” said Rahul Kalantri, VP Commodities, Mehta Equities.
“We expect gold and silver to remain volatile this week amid volatility in the dollar index. Gold has support at $1914-1904 while resistance is at $1938-1948. Silver has support at $23.35-23.20, while resistance is at $23.72-23.88 In INR terms gold has support at Rs 59,020 – 58,840, while resistance is at Rs 59,450 – 59,610. Silver has support at Rs 72,710-72,250, while resistance is at Rs 73,940–74,450,” Rahul Kalantri added.
Traders eye Services PMI data from major economies
“The US dollar rose to a near six-month high against its major crosses in the last session, while benchmark 10-year bond yields reached their highest level in over a week, dampening appetite for bullion. Expectations that the Fed will keep rates higher for longer have kept the gains for gold in check, with recent labor and inflation indicators showing that the central bank still needs to keep policy restrictive in the near term,” said Manav Modi, Analyst, commodity and currency, Motilal Oswal Financial Services.
“Global business activity largely slowed further last month as services firms struggled in the face of weak demand as rising prices and borrowing costs made indebted consumers rein in spending. US factory orders were reported a bit better than expectations but fell sharply against the previous month, 2.1% v/s 2.3%. Focus now shifts to Services PMI data from major economies and slew of Fed speakers this week,” Manav Modi added.
Source:financialexpress.com