Gold Price Today, 21 Dec 2022- Prices flat, dollar softens; gold to remain volatile due to currency fluctuations

Gold Price Today, 21 Dec 2022: Prices flat, dollar softens; gold to remain volatile due to currency fluctuations

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading flat on Wednesday amid mixed global cues, while the silver rate is up 0.14%. On Multi Commodity Exchange, gold February futures were trading at Rs 54,930 per 10 grams, up Rs 32 or 0.06%. Silver March futures were trading up by Rs 99 at Rs 69,741 per kg on MCX. Globally, the yellow metal inched lower from its one-week high, according to Reuters. Spot gold fell 0.2% at $1,814.74 per ounce after rising more than 1% on Tuesday following a dip in the dollar. US gold futures were flat at $1,826.00.Navneet Damani, Sr. VP, Commodity & Currency, MOFSL

Gold price rose by more than 1%, near a one-week high, as the dollar weakened after the Bank of Japan’s surprise policy tweak. The Bank of Japan has had negative interest rates since 2016 and after all these years the central bank has decided to change its stance amidst the rising Inflationary concerns. BOJ kept its interest rates steady although announced tweaks in its yield curve control. They will expand the band of its 10-year yield target to 0.5% from -0.25% and also announced a plan to increase its monthly bond buying program.

Rahul Kalantri, VP Commodities, Mehta Equities

Gold and silver prices were sharply higher on Tuesday, aided by a sharp drop in the US dollar index, and also due to some safe-haven demand for the bullions following a surprise policy move by the Bank of Japan that rattled the market place. The Bank of Japan made an unexpected move to tighten its monetary policy by raising the cap for the interest rate on its 10-year bond by 0.25%. The Japanese yen surged against the US dollar in the foreign exchange market. Bond and stock markets were jolted on the news because Japan is a big player in global bond markets. The Japanese yen surged to more than 5 months highs against the US dollar and kept pressure on precious metals.

We expect bullion prices to remain volatile in today’s session due to sharp currency movements. Gold has support at $1805-1792 while resistance is at $1828-1840. Silver has support at $23.82-23.55, while resistance is at $24.48-24.65. In INR terms, gold has support at Rs 54,550-53,350, while resistance is at Rs 54,980, 55,110. Silver has support at Rs 69,050-68,580, while resistance is at Rs 70,120–70,680.

Prices are expected to trade with a positive bias: ICICI Direct Report

Gold climbed more than 1% yesterday amid a weak dollar. The Dollar index slid below 104 after the Bank of Japan’s surprise policy tweak. The Bank of Japan raised the cap on yield for its 10 year notes allowing them to move 50 bps either side of its 0% target, wider than the 25 bps band previously. However, sharp upside was capped on a surge in US treasury yields.

Gold prices are expected to trade with a positive bias for the day amid a weaker dollar and risk aversion in global markets. Further, gold prices may rally on expectations of disappointing economic data from the US. MCX gold prices are likely to breach the psychological Rs 55,000 mark and move towards the next key target resistance of Rs 55,500. MCX Silver March Future is also expected to breach the 70,000 mark and rally towards Rs 71,200.