Gold Price Today, 23 Feb- Gold softens, dollar gains on Fed minutes; US GDP data eyed for further cues

Gold Price Today, 23 Feb: Gold softens, dollar gains on Fed minutes; US GDP data eyed for further cues

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading in the red on Wednesday as a result of negative global cues, while the silver rate is down 0.17%. On Multi Commodity Exchange, gold April futures were trading at Rs 55,882 per 10 grams, down Rs 201 or 0.36%. Silver March futures were trading lower by Rs 109 at Rs 65,329 per kg on MCX.

Globally, the yellow metal ticked lower on Thursday after minutes from the Federal Reserve‘s latest policy meeting indicated that the U.S. central bank would likely keep interest rates higher for longer to check high inflation, according to Reuters. Spot gold was down 0.1% at $1,823.69 per ounce. U.S. gold futures slipped 0.5% to $1,833.10.

“After the FOMC meeting minutes, focus now shifts to U.S. GDP data where any sign of resilience could support a move in Dollar. Later this week, we also have the important U.S. Core PCE data. Broader trend on COMEX could be in the range of $1805-1850 and on domestic front prices could hover in the range of Rs 55,300-56,600,” said Manav Modi, MOFSL.

Gold likely to trade with negative bias amid strong dollar

“Gold prices moved lower after FOMC meeting minutes. Minutes showed that most policymakers agreed that the central bank should slow the pace of its interest rate increases, allowing them to increase borrowing cost to control inflation. At the same time, participants noted that upside risk to the inflation outlook remained a key factor shaping the policy outlook and the rate would need to move higher and stay elevated until inflation is clearly on a path to 2%.

“Gold is likely to trade with a negative bias amid a strong dollar and surge in U.S. treasury yields. Further, investors will focus on the release of key U.S. preliminary GDP numbers to get fresh directional cues. Gold prices are likely to slide towards the immediate support of 55,750-55,500. The 20 day EMA at 56,500 would act as key resistance for price. MCX Silver is likely to follow the path of the yellow metal and slip towards 65,500,” said an ICICIdirect report.