Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading lower on Thursday, while the silver rate is up 0.20%. On Multi Commodity Exchange, gold August futures were trading at Rs 58,425 per 10 grams, down Rs 48 or 0.08%. Silver July futures were trading higher by Rs 146 at Rs 71,211 per kg on MCX.
Globally, the yellow metal was flat on Thursday as investors awaited a raft of U.S. economic data that could influence the Federal Reserve’s policy trajectory, after minutes of its June meeting reaffirmed expectations that interest rates could remain higher for longer, according to Reuters. Spot gold held its ground at $1,918.59 per ounce while U.S. gold futures fell 0.1% to $1,925.00.
Gold to trade range-bound
“COMEX Gold rate pared early gains and closed marginally lower at $1927.1 per troy ounce on Wednesday, tracking a rebound in the greenback after the release of FOMC meeting minutes. Minutes of the June Fed policy meeting showed that almost all participants judged it appropriate to leave the fed funds rate steady in June, as it would allow them more time to assess the economy’s progress toward maximum employment and price stability. Still, some members favored raising rates by 25bps. All officials continued to anticipate that, with inflation still well above the 2% goal and the labor market remaining very tight, maintaining a restrictive stance would be appropriate, and almost all saw the need to raise borrowing costs again this year.
“Dollar index advanced towards 103.3 levels and treasury yields held ground, as markets digested slightly hawkish minutes. Nevertheless, concerns regarding an economic slowdown are prompting investors to price in another 25 bps hike for July and a pause after that, deviating from the FOMC’s Summary of Economic Projections. US ISM Services PMI and Labour market indicators will be in focus for the day. Better than expected data might increase the odds of a September hike and prove to be a headwind for gold prices,” said Ravindra V. Rao, VP-Head Commodity Research, Kotak Securities.
Gold prices flat
“Gold price was flat in the early morning trade as investors digested minutes from the Federal Reserve’s latest meeting, while looking out for a raft of economic data that could influence the U.S. central bank’s policy trajectory. FOMC minutes showed a united Fed agreed to hold interest rates steady at the June meeting as a way to buy time and assess whether further rate hikes would be needed. Federal official John Williams mentioned that it was the right move for the central bank to hold rates steady, while hinting at some point it may have to raise rates again.
“Traders also kept a close watch on updates about China’s export controls on semiconductor metals as it ramps up a tech fight with the United States ahead of Treasury Secretary Janet Yellen’s Beijing visit. Investors’ focus now shifts to the U.S. Labor Department’s, JOLTS, ADP, jobless claims on Thursday before Friday’s non-farm payrolls report,” said Manav Modi, Research Analyst Commodities and Currencies at MOFSL.
