Gold, silver prices: Lack of fresh demand in spot market putting pressure on gold

Gold, silver prices: Lack of fresh demand in spot market putting pressure on gold

Experts see range-bound movement in prices; say focus will be on comments of RBI governor after MPC meeting

Navneet Dubey 
Navneet Dubey 
  • Updated Jun 8, 2023 3:29 PM IST
Gold, silver prices: Lack of fresh demand in spot market putting pressure on goldYesterday gold prices corrected from higher levels and closed 0.85 per cent lower at Rs 59,490 levels.

Gold prices on the Multi Commodity Exchange (MCX) opened on Monday at Rs 59,528 per 10 grams and hit an intraday low of Rs 59,515. In the international market, prices hovered around $1,945.60 per troy ounce.

Meanwhile, silver opened on Monday at Rs 71,798 per kg and hit an intraday low of Rs 71,790 on the MCX. In the international market the price hovered around $23.53 per troy ounce.

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Anuj Gupta, Vice President of IIFL Securities, said, “Yesterday gold prices corrected from higher levels and closed 0.85 per cent lower at Rs 59,490 levels. However, intraday it tested a high of Rs 60,098 levels. The lack of fresh demand in the spot market is putting pressure on gold. In the international spot market, it is trading at $1,945 levels. Gold prices are awaiting the decision of the US Federal Reserve on interest rates. However, expectation of a pause on rate hikes may provide support to gold prices. Today, we expect range-bound momentum in gold prices; strong support at Rs 59,200 levels and then Rs 59,000 levels, and resistance at Rs 59,700 and then at Rs 60,000 levels. One can buy around Rs 59,200-59,300 levels with the stop-loss of Rs 59,000 and for the target of Rs 59,700–60,000 levels. Gold may test $1,955 to $1,960 levels soon.”

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Adding to this, Manav Modi, Analyst, commodity and currencies, Motilal Oswal Financial Services (MOFSL), said: “Gold prices inched higher following a 1% drop in the previous session, while investors cautiously awaited the upcoming Federal Reserve policy meeting. Resurgence in the dollar and Treasury yields amidst the debt ceiling concerns and interest rate hike debate has also capped losses for metal on higher end. The U.S. economy is strong amid robust consumer spending but some areas are slowing down, U.S. Treasury Secretary Janet Yellen said, adding that she expects continued progress in bringing inflation down over the next two years. According to the interes probability chart, the Fed will not raise interest rates for the first time in more than a year at its June 13-14 meeting. The U.S. consumer inflation report for May, due on June 13, ahead of the Fed meeting, will provide investors with more clarity about the health of the world’s largest economy. Focus today will be on RBI policy meeting, wherein no changes in rate is expected however, comments from the governor will be important to watch for.”

Published on: Jun 8, 2023 11:02 AM IST
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