Commodities News

Gold Price Today, 24 March: Gold prices fall as US Fed’s allays banking concerns; to remain range-bound

Gold Rate Today, Gold Price in India on 24 March: Gold and silver prices rebounded after a small two-day correction following the release of Initial Jobless Claims data that showed less Americans signed for unemployment benefit.

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading in the red on Friday as a result of negative global cues for the metal, while the silver rate is down 0.01%. On Multi Commodity Exchange, gold April futures were trading at Rs 59,340 per 10 grams, down Rs 225 or 0.38%. Silver May futures were trading lower by Rs 7 at Rs 70,205 per kg on MCX. 

Globally, the yellow metal prices edged lower but traded in a relatively tight range on Friday as the dollar steadied, while investors assessed the U.S. central bank’s hints at a potential pause in its rate-hike trajectory, according to Reuters. Spot gold was down 0.1% at $1,991.03 per ounce, after two sessions of sharp gains. U.S. gold futures also dipped 0.1% to $1,993.80.

Gold to remain highly volatile in trade

“Gold and silver prices rebounded after a small two-day correction following the release of Initial Jobless Claims data that showed less Americans signed for unemployment benefit. The dollar index slipped again and the U.S. 10-year bond yields also slipped below 3.50% which supported the precious metals. Gold and silver are in solid bull-run and could continue their momentum in the upcoming sessions. Weakness in the dollar, lower U.S. bond yields, economic growth concerns, geo-political tensions could continue to support precious metals.

“We expect gold and silver to remain highly volatile in today’s session. Gold has support at $1981-1968 while resistance is at $2005-2018. Silver has support at $22.72-22.60, while resistance is at $23.22-23.34. In INR terms gold has support at Rs 59,410-59,150, while resistance is at Rs 59,980, 60,350. Silver has support at Rs 69,420-68,910, while resistance is at Rs 70,790–71,380,” said Rahul Kalantri, VP Commodities, Mehta Equities. 

Gold prices extended gains on Thursday

“Gold prices extended gains to a second straight session, boosted by a slide in Treasury yields after the U.S. Federal Reserve signaled an end to its monetary tightening cycle might be on the cards. The Fed raised rates by a quarter of a percentage point, raised the inflation forecast and lowered the growth forecast. Governor Powell did try to balance the market sentiments by mentioning that US banking is sustainable and there is no distress. He also did mention that a few more rate hikes will be needed to curb inflationary pressure, however growth concerns and comments from Treasury Secy. Janet Yellen regarding not considering blanket insurance for depositors supported the move in gold and silver. 

“On the data front, the number of Americans filing new claims for unemployment benefits edged down last week. Focus today will be on preliminary manufacturing and Service PMI data from major economies and US Core Durable goods orders data. The BOE raised interest rates for the 11th time in a row on Thursday, but said a surprise resurgence in inflation would probably fade fast, prompting speculation it had ended its run of hikes. Broader trend on COMEX could be in the range of $1970-2025 and on domestic front prices could hover in the range of Rs 59,300-60,000,” said Manav Modi, MOFSL. 

Source:financialexpress.com

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