Gold Price Today, 20 Dec 2022- Outlook bearish as dollar rises; could break support, fall to 53730 level

Gold Price Today, 20 Dec 2022: Outlook bearish as dollar rises; could break support, fall to 53730 level

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading higher on Tuesday amid mixed global cues, while the silver rate is down 0.09%. On Multi Commodity Exchange, gold February futures were trading at Rs 54,410 per 10 grams, up Rs 150 or 0.28%. Silver March futures were trading flat, lower by Rs 60 at Rs 67,452 per kg on MCX. Globally, gold prices were muted as a result of a stronger dollar and lingering concerns over the US Fed’s further rate hikes, according to Reuters. Spot gold was down 0.1% at $1,785.98 per ounce. US gold futures fell 0.1% at $1,795.10 while the dollar index edged 0.1% higher.Prices expected to trade with negative bias: ICICI Direct report

Gold prices dropped on Monday amid a surge in US 10 year’s treasury yields. Further, expectations of more rate hikes from the US Federal Reserve dented the non-yielding bullion’s appeal. However, sharp downside was prevented on a weakness in the US dollar and ongoing concerns over a global economic slowdown. Gold prices are expected to trade with a negative bias for the day amid a rise in US treasury yields. Meanwhile, sharp downside in prices may be cushioned on weakness in the dollar and pessimistic global market sentiments. Market sentiments were hurt on recessionary fears and on concerns over surge in Covid-19 cases in China. MCX gold prices are likely to break the key support level of 54,150 to trade in a downward trend towards the level of 53,900 in the coming trading session. MCX silver prices are expected to take cues from gold prices and continue their downward trend towards 66,500 levels.

Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One

Gold prices on Monday began the week on a lower note, continuing the weakness from the previous sessions, as prices settled 0.27% lower at $1787.4 per ounce. The outlook for the non-yielding bullion continued to be clouded by a stronger dollar and persistent concerns about additional rate increases from the US Federal Reserve, which put pressure on the price of yellow metal.

The likelihood of a higher Fed rate could limit gold’s upward movement, as Fed Chair Jerome Powell stated last week, the US central bank would continue to raise interest rates in order to combat inflation in 2019. Despite being regarded as an inflation hedge, gold seems to have a higher opportunity cost when interest rates are higher. We expect gold to trade lower towards 53950 levels, a break of which could prompt the price to move lower to 53730 levels.