Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading flat on Friday, even as yellow metal inched higher in global markets. On Multi Commodity Exchange, gold October futures were trading flat at Rs 50,110 per 10 gram, against the previous close of Rs 50,070. Silver September futures were ruling at Rs 52,519 per kg. Globally, yellow metal prices edged up but were headed for a third straight weekly drop, as data pointing at a resilient U.S. economy bolstered the likelihood of the Federal Reserve keeping interest rates higher for longer and pinned the dollar near recent peaks. Spot gold inched up 0.1% to $1,697.80 per ounce, but was down 2.2% for the week so far. U.S. gold futures were flat at $1,709.10, according to Reuters.
Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities
Pritam Patnaik, Head – Commodities, HNI & NRI Acquisitions, Axis Securities
The trajectory that gold prices have taken in the last week is not surprising. The Fed voices, right from the Fed Chairman to individual State Fed presidents, all have been unanimously Hawkish. Adding to that, upbeat US macro data and growing concerns of the Chinese economy, don’t make much of an argument for a bullish bullion trend in the near future. The market will definitely track the NFP data today, but either way, it may not translate well for gold. A better than expected number will logically lead to a correction in gold prices, especially when the probability of a rate hike will increase, as the Fed has made it clear that their rate decisions will be data driven, going forward. A worse off number could lead to correction in broader markets and rise in safe haven USD, which could result in lower gold prices. Either way, the recovery rally in gold is still some time off. So sell on the rise is the recommended strategy.
Sriram Iyer – Senior Research Analyst at Reliance Securities
Gold & silver prices extended losses on Thursday with gold falling below the $1700/ounce level for the 1st time Mid-July as a rising dollar and expectations for aggressive interest rate hikes dented its appeal. The Dollar Index hit a 20-year high after U.S. data showed a buoyantly strong economy, giving the Fed more room to raise interest rates and weighed on prices. Looking ahead, gold and silver prices could continue range bound this Friday as investors looked ahead to a key jobs report that could offer insight on the state of the economy and influence the outlook for monetary policy. The US economy is expected to have added 300,000 jobs in August, but another big upward surprise could boost bets for more aggressive tightening and weigh on prices. Range for COMEX December gold is $1724.15 to $1677.55, while that for the MCX October gold contract is 49665 to 50500.
(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)
