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Gold Price Today, 13 April: Gold rally extends for third day; traders eye Fed for rate hike cues

Gold Rate Today, Gold Price in India on 13 April: Gold prices were mildly higher on Thursday as U.S. dollar softens on hopes of the Federal Reserve’s monetary-tightening cycle nearing an end.

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading higher on Thursday, while the silver rate is up 0.13%. On Multi Commodity Exchange, gold June futures were trading at Rs 60796 per 10 grams, up Rs 168 or 0.28%. Silver May futures were trading higher by Rs 100 at Rs 76,013 per kg on MCX. 

Globally, the yellow metal inched higher for a third consecutive session on Thursday, as cooler-than-expected U.S. inflation data spurred bets that the Federal Reserve might raise rates once more next month before pausing hikes. Spot gold was up 0.1% at $2,016.99 per ounce, as of 0332 GMT. U.S. gold futures rose 0.3% to $2,030.70.

Gold rally continues for third day

“Gold prices marginally up on Thursday with spot gold at Comex trading higher by 0.12% at $2017 per ounce in morning trade. Rally in gold prices continues for a third day but at a slower pace amid weakness in US dollar, after softer inflation spurred hopes that the Federal Reserve’s monetary-tightening cycle is nearing an end and increased expectation for lower rates by the end of this year. However, expectations for another 0.25 basis rate hike in Fed’s next meeting could limit gold’s upside. 

“For the medium term outlook, we expect Comex spot gold prices can rally further to $2050/$2065 per ounce price crosses the resistance of $2033 per ounce. In the short term, gold price should fluctuate in the range of $1995 to $2033 per ounce with positive bias. Comex spot gold having support at $ 2009/1995 per ounce and resistance at $2033/$2065 per ounce for the day. MCX Gold June future having support at Rs 60,300 per 10 gram and resistance at Rs 61,170 per 10 grams,” said Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities.

Gold prices inch higher

“Gold prices inch higher, helped by a softer dollar as cooler-than-expected U.S. inflation data suggested that the Federal Reserve might pause raising rates after a possible hike in May. U.S. Consumer Price Index rose 0.1% last month versus expectations of a 0.2% rise, after advancing 0.4% in February. Meanwhile, CPI YoY was reported at 5% against the previous number of 6%. 

“After the inflation data, all eyes were on FOMC meeting minutes, which showed several policymakers considered pausing rate increases after a forecast from Fed staff that banking sector stress would tip the economy into recession, but concluded that high inflation remained the priority. Since past few sessions, Fed officials’ comments are signaling some pause in rate hikes amidst the global uncertainties. However, it is interesting to see that the probability chart has not shifted much, still showing around a 65% chance for a 25 bps rate hike. Focus now shifts to US PPI data scheduled today and retail sales and IIP data scheduled tomorrow which could give some signs regarding the overall economic health. Broader trend on COMEX could be in the range of $2005-2025 and on domestic front prices could hover in the range of Rs 60,350-61,350,” said Manav Modi, MOFSL.

Source:financialexpress.com

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