Gold Price Today, 21 June- Gold trades flat, silver sinks as dollar firms; spotlight on US Fed Chair testimony

Gold Price Today, 21 June: Gold trades flat, silver sinks as dollar firms; spotlight on US Fed Chair testimony

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading flat on Wednesday, while the silver rate is down 0.21%. On Multi Commodity Exchange, gold August futures were trading at Rs 58,820 per 10 grams, up Rs 11 or 0.02%. Silver July futures were trading lower by Rs 147 at Rs 70,240 per kg on MCX.

Globally, the yellow metal prices moved in a tight range on Wednesday after two-straight sessions of declines, as investors refrained from making large bets ahead of Federal Reserve Chairman Jerome Powell’s congressional testimony, according to Reuters. Spot gold held its ground at $1,937.26 per ounce by 0248 GMT. U.S. gold futures were almost unchanged at $1,948.40.

“We expect the gold rate and silver rate to remain volatile in today’s session. Gold has support at $1926-1916 while resistance is at $1948-1960. Silver has support at $22.92-22.78, while resistance is at $23.32-23.48. In INR terms gold has support at Rs 58,640-58,480, while resistance is at Rs 59,020, 59,290. Silver has support at Rs 69,820-69,420, while resistance is at Rs 70,740–71,420,” said Rahul Kalantri, VP Commodities, Mehta Equities.

Gold prices witness recovery

“Gold price slipped in yesterday’s session on the back of positive US housing data, firmer dollar and US Yields, while traders looked to Federal Reserve Chair Jerome Powell’s testimony on Capitol Hill for cues on the interest rate trajectory. U.S. single-family homebuilding surged in May to its highest in more than a year. The expectations were slightly lower, anticipating that homebuyers would be deterred by high borrowing costs, however the data suggested domestic demand was strong enough that the Fed could be tempted to raise interest rates further still in their efforts to cool inflation. Markets await Fed Chair Powell’s testimony on Wednesday on twice-yearly reports to Congress on the state of monetary policy, which says inflation in key parts of the U.S. service industry remains elevated and has not shown signs of easing.

“Meanwhile, pressure is mounting on China’s cash-strapped local governments as authorities move to shut a private funding route for their financing arms, according to planned new rules and people familiar with their aims, raising credit risks and default worries. Apart from Governor Powell’s comments, inflation data from the UK will also be important to watch out for, as it could trigger volatility in the Dollar Index,” said Manav Modi, MOFSL.