Gold Price Today, 26 May- Gold near two-month lows, set for third weekly fall; US debt ceiling talks eyed

Gold Price Today, 26 May: Gold near two-month lows, set for third weekly fall; US debt ceiling talks eyed

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading flat on Friday, while the silver rate is up 0.23%. On Multi Commodity Exchange, gold June futures were trading at Rs 59,530 per 10 grams, up Rs 70 or 0.12%. Silver July futures were trading higher by Rs 159 at Rs 70,401 per kg on MCX.

Globally, the yellow metal prices on Friday as the dollar pulled back from a two-month high, but bullion was poised for a third straight weekly fall as traders assessed the progress of U.S. debt ceiling negotiations and the Federal Reserve’s next policy move, according to Reuters. Spot gold was up 0.3% to $1,945.39 per ounce by 0311 GMT, after hitting its lowest since March 22 at $1,936.59. U.S. gold futures edged up 0.1% to $1,945.90.

“Adding more pressure on gold rate and silver price was better than expected economic numbers from the U.S. Growth from the US was reported at 1.3% against expectations of 1.1%. Also, new U.S. jobless claims rose moderately last week, indicating persistent labour market strength. Boston Fed President Collins said that the time may be at hand for the U.S. central bank to push the pause button on its rate-hiking campaign to see how the impact of past tightening is weighing on activity. Focus today will be on Core Durables goods orders data and Core PCE data from the US,” said Manav Modi, MOFSL.

Gold prices overvalued at current level

“Spot gold closed 0.85% lower at $1940.34 on better than expected U.S. GDP data. The second estimate pegged Q1 GDP annualized growth at 1.3% Vs the forecast of 1.10%. As the German economy slipped into a winter recession, it is another positive factor for the greenback. The US debt ceiling issue is yet to be resolved, though reportedly the concerned parties have been able to narrow down their differences, which weighed further on the yellow metal. The rating agency Fitch has kept the U.S. on negative watch, though it expects debt ceiling agreement to be reached by June 1, the X date.

“Gold is currently trading with a gain of 0.35% at $1,947.74. Considering the current levels of U.S. yields, dissipating banking concerns, no Fed pivot in sight, and Dollar Index value, the metal is somewhat overvalued at current level. Key support is around $1930 followed by the psychologically important round figure of $1,900. Resistance is at $1,952/$1,965/$1,988,” said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.