Gold Price today: On account of ease in US dollar, gold prices in domestic and international market witnessed some bargain hunting in the week gone by. Gold future contract for April 2023 on Multi Commodity Exchange (MCX) finished at ₹55,737 per 10 gm levels, logging weekly gain of around 0.54 per cent. However, in international market, yellow metal price ascended over 2 per cent and closed at around $1,848 per ounce levels.
MCX Support for the Gold Price
According to commodity market experts, correction in US dollar rates and Dollar Index retracing from the resistance levels was the major reason for bounce back in gold prices across world in the week gone by. They said that gold rates today has immediate support placed at $1,835 levels whereas major support for the the precious bullion metal is at $1,810 levels. On MCX, immediate support for the yellow metal price is placed at ₹55,300 per 10 gm while ₹55,000 per 10 gm is expected to remain major base for the precious metal price. On higher side, gold price is facing resistance at 56,200 levels whereas ₹56,700 per 10 gm is major hurdle for the precious bullion price movement. In international spot market $1,860 is immediate hurdle while $1,890 per ounce is major resistance for the yellow metal.
Bullion Experts Advised
Bullion experts advised gold and silver investors to maintain ‘buy on dips’ strategy as profit booking is US dollar may continue next week leading to more upside in gold and silver price.
“After oscillating at 2-month low for few sessions, gold witnessed some bottom fishing that led to rise in prices across globe. Profit booking in US dollar at higher levels was one of the major reasons for rise in gold price in domestic and international market. Last week, Dollar Index surged above 105 levels but failed to sustain above 105 levels that helped gold prices to rally from its over sold zone.”
Hawkish Monetary Policy
“There has been a decline in consumer confidence figures amidst improvement in data released from the US, which has supported gold prices. After the end of the zero COVID-19 policy, activity in China’s economy has increased, the effect of which has been seen in the form of better manufacturing figures released last week. The US unemployment figures have also been recorded better than expected, keeping the expectation of a hawkish monetary policy.”
Expert went on to add that the Indian Meteorological Department’s recently released forecast on the monsoon has expressed the possibility of the impact of El Nino, where the likelihood of drought increases. He said that it may force the Reserve Bank of India (RBI) to remain soft on interest rate hike in upcoming monetary policy meeting. Nirpender Yadav expected that volatility in gold prices may continue further and advised investors to know their levels while making any buying or selling decision on gold and other bullions.
MCX Gold Trading Outlook
In MCX Gold, 54700 continues to be good support while in Spot Gold, $1777 is proving to be a good support zone. Next week there are plenty of triggers so we would advise traders not to carry any overleveraged positions and be ready for volatility. Any dips near 54700 could be buying opportunities with a stop loss of 53900 and an expected target of 56100—56840.
“US dollar is expected to remain sideways to bearish in near term, which may support gold price. So, one should buy at support levels and book profit at resistance levels as overall trend for gold price may remain sideways to positive till final outcome of the US Fed’s FOMC meeting (scheduled on 21-22 March 2023) becomes public.”