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Gold Price Today, 17 April: Gold higher but off one-year highs; traders expecting higher chance of rate hike

Gold Rate Today, Gold Price in India on 17 April: Gold was trading steady on Monday and Comex traded mildly higher, just above the $2000 per ounce mark.

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading higher on Thursday, while the silver rate is up 0.5%. On Multi Commodity Exchange, gold June futures were trading at Rs 60,596 per 10 grams, up Rs 267 or 0.44%. Silver May futures were trading higher by Rs 376 at Rs 76,053 per kg on MCX. 

Globally, the yellow metal inched higher on Monday but were off one-year highs reached late last week as mixed economic data prompted investors to reassess the U.S. Federal Reserve’s rate hike trajectory and boosted the dollar, according to Reuters. Spot gold was up 0.1% at $2,004.74 per ounce, as of 0353 GMT. U.S. gold futures rose 0.1% to $2,017.50.

Gold prices may witness correction

Gold price was steady on Monday, with spot gold at Comex trading slightly higher by 0.2% at $2004.80 per ounce in morning trade. Comex spot gold prices hovered around psychological level $2000 per ounce on Monday after falling from 13 months high on Friday on a stronger chance of another Federal Reserve rate increase due to US near-term inflation expectations unexpectedly surging in early April. Recovery in the US Dollar and yields also weighed on yellow metal. 

“We expect gold price will witness correction for the day and Comex spot gold price should retest support level of $1991/$1980 per ounce in the short term. Comex spot gold having support at $ 1991/$1980 per ounce and resistance at $2019/$2035 per ounce for the day. MCX Gold June future having support at Rs 60,080 per 10 gram and resistance at Rs 60,680 per 10 grams,” said Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities.

Gold prices inch lower globally

“Gold prices inched lower, as a firmer U.S. dollar and prospects of one more rate hike by the Federal Reserve after last week’s mixed economic data and Fed officials comments dented the metal’s appeal. Data released on Friday showed U.S. core retail sales, which correspond most closely with the consumer spending component of gross domestic product, slipped 0.3% last month, but the gains in January and February put consumer spending firmly on track to accelerate in the first quarter. A separate report showed production at U.S. factories fell more than expected in March, but eked out a modest gain in the first quarter. 

“Fed officials mentioned about the banking crisis and gave some signs regarding a pause in rate hike in the coming meeting to start the week; however, Fed official Waller changed market sentiment when he mentioned that the Fed haven’t made much progress in returning inflation to their 2% target, and need to move interest rates higher still. Even after a lower than expected CPI data CME FedWatch tool shows markets are pricing in a ~80% chance of a 25 bps hike in May. Broader trend on COMEX could be in the range of $1995-2015 and on domestic front prices could hover in the range of Rs 59,750-60,650,” said Manav Modi, MOFSL.

Source:financialexpress.com

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