Gold price forecast: Gold rate is trading flat on Friday, while the silver rate is up 0.31%. On Multi Commodity Exchange, gold April futures were trading at Rs 59,484 per 10 grams, up Rs 168. Silver May futures were trading higher by Rs 266 at Rs 72,045 per kg on MCX.
Globally, the yellow metal prices edged up on Friday, en route to their best monthly performance since July 2020, as the recent banking system crisis led to expectations of a less-aggressive U.S. Federal Reserve, making bullion an attractive bet. Spot gold was up 0.1% at $1,981.59 per ounce. U.S. gold futures rose 0.1% to $1,984.00. Bullion was also set for a second consecutive quarterly gain, up 8.6% so far.
Mixed U.S. Data and Inflation Concerns Impacting Gold and Silver Prices
“Gold and silver prices traded higher on Thursday, with silver hitting a two-month high as bullish technical charts are fueling speculative buying interest in the two precious metals. A depreciating U.S. dollar is also working in favor of the metals market. The U.S. data released this week were also mixed and supported precious metals. Traders and investors are looking for today’s U.S. personal consumption and expenditures (PCE) data that will provide fresh clues on inflation and whether the U.S. economy is headed toward recession.
Yellow Metal Set for Second Consecutive Quarterly Gain
“Gold prices gained nearly 1%, while silver gained more than 2% in the previous session, as weaker dollar and lower bond yields drove demand for the precious metal, while investors kept their eyes peeled for U.S. inflation data to gauge the Federal Reserve’s next move. The dollar index dipped 0.5%, making gold more attractive for overseas buyers, while benchmark 10-year Treasury yields eased, hovering around the 3.5% mark.
“On the data front, market participants were cautious ahead of the US final Q4 GDP data, which was reported at 2.6%, against previous data at 3.2%. The Fed’s favored inflation gauge, core personal consumption expenditures (PCE), is due later today. Investors will be looking for clues about the path of the U.S. central bank’s monetary policy. According to the CME FedWatch tool, markets are pricing in a roughly 50-50 chance of the Fed maintaining rates at current levels at its May meeting. Broader trend on COMEX could be in the range of $1960-1995 and on domestic front prices could hover in the range of Rs 58,700-59,700,” said Pia Chauhan.
Conclusion
The recent mixed data and inflation concerns are impacting gold and silver prices globally. The recent banking system crisis has led to expectations of a less-aggressive U.S. Federal Reserve, making bullion an attractive bet for investors. The yellow metal is set for its best monthly performance since July 2020 and is on track for a second consecutive quarterly gain, up 8.6% so far. However, with the market remaining highly volatile, gold and silver prices are expected to remain unpredictable in the near term. Investors will continue to closely monitor U.S. inflation data and the Federal Reserve’s monetary policy to gauge the market’s direction. Overall, gold and silver remain a popular investment option for those seeking to diversify their portfolio and hedge against market volatility.
