Gold Rate Today: Gold, silver prices drop on Fed comments, firm dollar

Gold prices fell on Thursday as the dollar recovered after comments from Federal Reserve officials pointed to aggressive interest rate hikes, even as inflation in June eased from a 40-year high in the world’s largest economy.

Gold futures on

were trading 0.31 per cent lower at Rs 52,080 per 10 grams. Silver futures declined 0.69 per cent to Rs 58,552 per kg. Gold is highly sensitive to rising US interest rates, as these increase the opportunity cost of holding non-yielding bullion.

The dollar index regained some ground and traded 0.2 per cent higher at 105.420, after falling to its lowest since June 29 on Wednesday.

Minneapolis Fed Bank President Neel Kashkari said that he continues to believe that the US central bank will need to raise its policy rate to 3.9 per cent by year-end and to 4.4 per cent by the end of 2023 to fight inflation. In overnight trade, the annual US consumer price index eased to 8.5 per cent in July from a 40-year high of 9.1 per cent the previous month, the US Labor Department reported, while the monthly rate was unchanged, which was a big surprise.

“Today’s range of MCX October gold is Rs 52,090-52,505. Domestic silver futures prices could stay flat-to-weak, tracking overseas markets. The range for MCX September silver contract is Rs 58,450-59,415,”

Securities said in a note.

Data from SPDR Gold ETF Trust fund showed its holdings fell 0.17 per cent to 997.42 tonnes on Wednesday from 999.16 tonnes in the previous session.

Rahul Kalantri, VP Commodities, Mehta Equities expects precious metals to remain volatile during Thursday’s session. Gold has support at $1782-1774 while resistance is at $1,810-1,818 per troy ounce, he said.

“In rupee terms, gold has support at Rs 52,040-51,810, while resistance is at Rs 52,420–52,540. Silver has support at Rs 58,510- 57,980 while resistance is at Rs 59,380–59,740,” he said.

Global markets
Spot gold was down 0.4% at $1,784.88 per ounce after hitting its highest since July 5 at $1,807.79 on Wednesday. US. gold futures dipped 0.7 per cent to $1,800.20. Elsewhere, spot silver fell 0.6 per cent to $20.44 per ounce, platinum rose 0.2 per cent to $943.83, and palladium gained 0.2 per cent to $2,243.24, Reuters reported.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)

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