Gold Price Today, 6 June- Gold steady, dollar softens; traders eye US Fed rate-hike decision

Gold Price Today, 6 June: Gold steady, dollar softens; traders eye US Fed rate-hike decision

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading flat on Tuesday, while the silver rate is up 0.25%. On Multi Commodity Exchange, gold August futures were trading at Rs 59,869 per 10 grams, up Rs 21 or 0.04%. Silver July futures were trading higher by Rs 177 at Rs 72,049 per kg on MCX. 

Globally, the yellow metal prices steadied in a tight range on Tuesday as optimism that the U.S. central bank will not hike interest rates this month kept the dollar under pressure. Spot gold held its ground at $1,960.89 per ounce by 0239 GMT. U.S. gold futures edged 0.1% higher to $1,976.80.

“Meanwhile, ECB President Christine Lagarde on Monday acknowledged “signs of moderation” in core inflation in the euro zone but reaffirmed it was too early to call a peak in that key gauge of price growth, increasing expectations for more interest rate increases from the ECB. Recent signs of ease in wage inflation, forecasts for an ease in US CPI in May and prospects of a Fed pause in June might cap dollar gains and aid gold price,” said Ravindra V. Rao, CMT, EPAT, VP – Head Commodity Research, Kotak Securities.

Gold price remains steady

“The gold rate was steady in the early morning trade after U.S. services sector data bolstered hopes that the Federal Reserve might pause its monetary policy tightening cycle this month. The dollar index was flat hovering around 104 mark after inching lower in earlier sessions, while the US 10Y yield eased to 3.6%. After a change in comments from fed officials last week, market participants started discounting a pause in the June Fed meeting supporting metal prices. Market participants are pricing in a more than 75% probability for a pause in the next Fed meeting.

“On the data front, the ISM services sector barely grew in May as new orders slowed, pushing a measure of prices paid by businesses for inputs to a three-year low, which could aid the Fed’s fight against inflation. Factory orders were reported lower than the expectations, further supporting bullions. Indicative of sentiment, SPDR holdings rose 0.15% to 939.56 tonnes. Broader trend on COMEX could be in the range of $1935-1965 and on the domestic front, gold price could hover in the range of Rs 59,400-60,100,” said Manav Modi, MOFSL.