Gold Price Today, 12 Dec 2022- Prices fall as dollar strengthens; traders eye US inflation, Fed rate decision

Gold Price Today, 12 Dec 2022: Prices fall as dollar strengthens; traders eye US inflation, Fed rate decision

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate was negative on Monday as a result of negative global cues, while silver rate was down 0.38%. On Multi Commodity Exchange, gold February futures were trading at Rs 54,119 per 10 grams, down Rs 176 or 0.32%. Silver March futures were trading Rs 261 down at Rs 67,777 per kg on MCX. Globally, the yellow metal dropped as the dollar firmed, as traders await the US Federal Reserve’s decision regarding further rate-hikes due later this week. Spot gold slipped 0.2% to $1793.44 per ounce. US gold futures were down 0.3% at $1805.90, while the dollar index rose 0.2%, making gold more expensive for overseas traders.

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Rahul Kalantri, VP Commodities, Mehta Equities

Gold and silver extended gains last week despite hotter-than-expected US PPI data. Weakness in the dollar index and the US bond yields also supported the prices of both the precious metals. The US Labour department released November months Producer Price Index data and it came up by 0.3% against expected increase by 0.2% while it grew 7.4% on yearly basis against expected reading of 7.2%. After the higher than expected inflation readings the dollar index recovered from its lows but gold and silver maintained their bullish momentum.

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

Gold prices inched lower, dragged down by a firmer dollar, with investors awaiting key US inflation data and Federal Reserve’s rate-hike verdict due this week. U.S. producer prices rose slightly more than expected in November amid a jump in the costs of services, but the trend is moderating, with annual inflation at the factory gate posting its smallest increase in 1-1/2 years. The US central bank is also set to conclude a two-day meeting on Wednesday, where it is expected to raise rates by a relatively smaller 50 basis points. But the scale of future rate hikes will be largely driven by the path of US inflation. US Consumer Price Index (CPI) data is scheduled tomorrow and Fed’s final meeting of 2022 is scheduled on December 13-14. On other hand, China scaled back several nationwide anti-COVID restrictions last week, a move that is expected to eventually spark a recovery in the world’s second-largest economy. However, further update will be important to watch to gauge a move in silver and other industrial metals. Focus today will be on the IIP and CPI on the domestic front. Broader trend on COMEX could be in the range of $1770-1810 and on domestic front prices could hover in the range of Rs 53,850-54,400.