Gold Price Today, 17 Oct 2022- Gold gains strength amid festive season, silver shines too; check support

Gold Price Today, 17 Oct 2022: Gold gains strength amid festive season, silver shines too; check support

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate in India were trading in green on Monday on the back of positive trends in the international market. On Multi Commodity Exchange, gold December futures were ruling Rs 219 or 0.4 per cent up at Rs 50,479 per 10 grams as against the previous close of Rs 50260. Silver December futures were trading at Rs 55,876 per kg, up Rs 650 or 1.2 per cent on MCX. Globally, yellow metal prices rose supported by technical trading after the previous session’s steep fall and a pause in the dollar rally, although an impending oversized rate hike by the U.S. Federal Reserve limited bullion’s appeal, according to Reuters. Spot gold was up 0.5% at $1,650.49 per ounce. Prices fell more than 1% on Friday and marked its biggest weekly decline since July. U.S. gold futures were up 0.4% at $1,656.00.

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Gold prices inched higher but were pinned below key support levels as markets feared more interest rate hikes by the Federal Reserve. A steep fall was witnessed in both gold and silver prices as data showed U.S. inflation will likely take much longer to cool than initially expected. The U.S. CPI data drove up expectations of more inflation-busting rate hikes in the Fed policy meeting in Nov. There is a ~96% probability of a 75bps rate hike in Nov meeting, which is a fourth consecutive aggressive hike in this year. The hike will put U.S. interest rates at around 4%, their highest level since late-2007. The pressure on metals was also witnessed amidst a stronger dollar, which stayed within sight of a 20-year peak; while U.S. Treasury yields also traded at their highest levels since the 2008 financial crisis. There are several updates regarding the geo-political tensions, China has also ordered evacuation of all citizens from Ukraine amidst the escalation in the matter, which is supporting bullions. The economic calendar is fairly muted this week with not many important data points from the U.S. although focus will be on the comments from Fed officials. Broader trend on COMEX could be in the range of $1630-1680 and on domestic front prices could hover in the range of Rs 50,200-50,900.

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities

COMEX Gold trades 0.40% higher near $1655.7/oz amid slightly weaker US Dollar index and US treasury yields. The metal witnessed its worst weekly close since August amid steady US Dollar and rising treasury yields. Gold witnessed wild moves last week after the US CPI print that came in more than expected supporting the Fed’s case for aggressive rate hikes. The bulls have failed to keep the price above the $1700/oz as disappointing data pointers from the US is indicative of the fact that the Fed will be committed with their aggressive stance of cooling down the inflation. However , Worsening global growth outlook might boost the safe haven buying at lower levels.

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Deveya Gaglani, Research Analyst, Axis Securities

Gold bulls were spooked by better-than-expected inflation data last week, which raised the bet of an aggressive rate hike by the Fed. A strong dollar index is spoiling the party for Gold bulls whenever it tries to rebound. Multiyear high bond yields have smacked Gold prices this year benefiting the dollar, as the opportunity cost of holding the non-yielding asset has dented its appeal. The dollar index has overthrown Gold and has grasped the title of Safe haven asset, questioning its historic trend. We expect Gold prices to recover in the long run provided the Fed reduces its hawkish tone. Till then, selling on the rise will see a lot of interest.

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)