Gold Price Today, 2 Jan- Prices up, dollar softens; traders eye China, central banks, expect lower volatility

Gold Price Today, 2 Jan: Prices up, dollar softens; traders eye China, central banks, expect lower volatility

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading higher on Monday despite negative global cues, while the silver rate is up 0.2%. On Multi Commodity Exchange, gold February futures were trading at Rs 55,140 per 10 grams, up Rs 123 or 0.22%. Silver March futures were trading up by Rs 137 at Rs 69,550 per kg on MCX.

Globally, the yellow metal prices increased marginally on Friday. In 2022, bullion prices closed only 0.5% lower despite consistent rate hikes from the US Fed, as the dollar emerged as the safe haven asset of choice for investors, according to Reuters. Spot gold was up 0.2% to $1,818.64 per ounce. U.S. gold futures fell 0.1% to $1,824.60.

In Egypt, the price of gold has risen to previously unheard-of heights as frightened depositors look for refuge from a declining currency, and some businesses sell bullion to raise cash-strapped dollars to pay for imports. Gold prices are expected to remain elevated given the uncertainties arising from China. However, the U.S. Fed’s rate hike trajectory would likely limit the upside.

Navneet Damani, Sr. VP, Commodity & Currency, MOFSL

Gold prices were trading steady on the last day of the year amidst thin volumes following Christmas and New Year holidays. Silver however did show some volatility following the move in base metals and dollar index on the back of updates from China regarding Covid. After a positive U.S. growth data and ease off in inflation numbers, it will be very important to keep an eye on data points which show the economic health like the U.S. jobs market and manufacturing PMI from major economies, which is scheduled later this week. After the last policy meeting of major central banks, market participants are expecting further hikes in interest rates with an objective to control inflation. Updates from China will be very important to watch, as WHO has raised concerns regarding the spike in Covid cases however China continues to ease its lockdown restrictions. Volatility could be lower today as most markets are shut on the back of holiday. Broader trend on domestic front prices could hover in the range of Rs 54,700-55,200.

MCX Gold to continue upward trend: ICICIDirect Report

Gold prices edged up on Friday, helped by weakness in the dollar amid expectations of slower interest rate hikes by the US Federal Reserve. However, sharp upside was restricted by rise in U.S. 10 year’s treasury yields and stronger than expected Chicago PMI data from the U.S. Gold prices are likely to trade with a positive bias mainly on the back of a weak dollar. However, upsides may be limited as investors turned cautious following a worsening Covid situation in top bullion consumer China. MCX Gold is expected to break the near term hurdle of 55,100 to continue its upward trend towards the level of 55,300 in the coming trading session. Additionally, silver prices are likely to take cues from gold prices and continue their upward trend towards 70,400 level.