Gold Price Today, 18 Nov 2022- Gold trades flat as US dollar falls on hawkish US Fed; may remain volatile

Gold Price Today, 18 Nov 2022: Gold trades flat as US dollar falls on hawkish US Fed; may remain volatile

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate was flat to positive on Friday despite negative global trends, whereas silver rate was up 0.5 per cent. On Multi Commodity Exchange, gold December futures were trading at Rs 52,902 per 10 grams, up Rs 59 or 0.11 per cent. Silver December futures were trading Rs 357 or 0.58 per cent up at Rs 61,335 per kg on MCX. Globally, yellow metal rose on Friday due to a pullback in the dollar, but is headed for the first weekly decline in three weeks, since the US Fed signals that the rate hikes are set to continue, according to Reuters. Spot gold rose 0.1 per cent to $1,763.17 per ounce, en route to a weekly decline of about 0.4 per cent. US gold futures were up 0.2 per cent to $1,765.50.

Rahul Kalantri, VP Commodities, Mehta EquitiesA strong rally in the US dollar index and sharp losses in the crude oil market were bearish outside market forces pushing the metals markets lower. The gold and silver markets extended losses after two Federal Reserve officials sounded a still aggressively hawkish tone on US monetary policy. Precious metals fell following the release of the US housing data from October, with housing starts and building permits dropping less than expected. Crude oil also slipped and pushed both precious metals lower.

Ravindra Rao, CMT, EPAT VP-Head Commodity Research, Kotak SecuritiesCOMEX Gold trades near $1766 after a 0.72 per cent fall in yesterday’s session. Gold’s rally took a pause mid-week as the geopolitical premium that was built after a missile fell in Polish territory diminished after the Polish President’s statement. The recent rally in gold was mainly due to expectation that Fed would slow down the rate hike in their upcoming meeting after data showing inflation cooled in October. However, in the last few sessions various Fed governors seemed hawkish that has supported the US dollar.

Although some more correction can’t be ruled out, the undertone in gold still remains bullish as the probability of a smaller rate hike by Fed in the upcoming meeting is still more than 80 per cent. On the price front, as mentioned in our previous report gold failed in breaking the $1780/oz resistance on closing. Support now is pegged near $1740/oz which should hold and price might trade between $1740-$1780. Break on either side might give direction.

Dilip Parmar, Research Analyst, HDFC SecuritiesAfter two days of running correction, US Gold is trading slightly up in today’s session, as the metal’s safe-haven demand diminished on waning fears of an escalation in the Russia-Ukraine conflict. From the bottom of 1615, Comex Gold rose towards 1796 in a short span of time. A range of $1730- $1735 has become a strong base for gold. Bullion prices also saw an element of profit-taking after strong gains in four of the past five sessions, and still traded near a three-month high. In the United States, a gauge of manufacturing activity in the US mid-Atlantic region fell unexpectedly this month to its lowest level since 2011 as firms reported continued softness in new orders and a weak outlook.

MCX Gold has broken the 5 session’s winning streak and closed with a minor loss of 0.4 per cent. MCX. Silver Dec Futures broke below 8 session low with a loss of 1.64 per cent. Support for the gold Dec Future is seen at 52,600 odd levels, below which it could extend the correction. A level of 53,200 has become short-term resistance for the MCX gold December Future.