Gold Price Forecast: Dollar index, yesterday, rose from 107.70 to 109.80; meanwhile amidst higher interest rate expectation a spike in U.S. Yields was also seen. U.S. consumer prices unexpectedly rose in August and underlying inflation accelerated amid rising costs for rents and healthcare.
- Spot Silver Price Forecast: Buy on Dips, Healthy Resistance $20.20
- Gold Holds Near September High as Dollar’s Retreat Stretches
- Gold Forecast: Expect Gold Prices to Trade Sideways To Up
- Gold Rises on Weakening Dollar Ahead of US Inflation Data
- MCX Gold Silver Price Forecast: Trade With 500—1000 Lots
U.S. CPI on YoY basis rose to 8.3% against expectations of 8.1%; Core Cpi also rose by 0.3% from its expectations. After the inflation data, CME fedwatch tool which was showing almost 90% expectations of a 75bps rate hike, is now turned to 70% as expectation of 100bps is also getting factored in, adding further pressure on prices. A cautious approach is advised ahead of the volatility witnessed in Dollar Index and Yields. Focus today will be on U.K Inflation and U.S. PPI data.
Gold dropped from $1733 to $1692 before buyers emerged around its support zone of $1700 and brought the price to $1700. US headline inflation came higher than expected although lower than last time. Market was surprised by 8.3% inflation compared to the expected figure of 8.1%. This triggered selling in all asset classes and US dollar and Treasury yield climbed sharply as expectation increased of another 75 bps rate hike in Dec.
Expectation of a 100bps rate hike in Sept also increased by 20%. Equities experienced one of the deepest daily selloffs with the Dow Jones industrial average losing 1276.37 points or 3.94% while gold slid by 1.63%. The dollar index gained 1.48%, the largest single-day move since March 2020. In MCX and in COMEX, gold is near its support zone of 49,500 and $1692. If price drops below the support zone then expect prices to test levels of 49,000-48,700 and $1673. Any trader should keep their positions light as there will be volatility till 21st Sept.
Gold prices traded steady on Wednesday with spot gold prices at COMEX were trading flat near $1701 per ounce in the morning trade. MCX Gold October futures held steady in the opening trade near Rs. 50140 per 10 gram. Gold prices held above $1700 per ounce after correcting over a stronger dollar following a spike in US inflation. The dollar index rebounded on expectations of a larger rate hike from the US FED in the upcoming meeting. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1673 and resistance at $1720 per ounce. MCX Gold October support lies at Rs. 49700 and resistance at Rs. 50800 per 10 gram.
