Gold rates today: Yellow metal extends early morning gains. Do you own?

According to commodity market experts, gold rates today extended its morning gains as US dollar rates have retraced after opening positive today. Dollar index current in negative zone as it is quoting 103.507, 0.03 per cent lower from its Friday close. Experts said that US dollar price has retraed after rebounding from 10-month lows as US CPI data is awaited this week and market is expecting negative news on inflation front in this data, leading to weakness in US dollar price. They said that gold price is expected to remain range-bound in ₹56,350 to ₹57,100 per 10 gm in domestic market whereas its range in international market is expected to remain $1,835 to $1,890 per ounce till US CPI data becomes public.

On why gold rates today extended its early morning gains, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold prices today extended morning gains as US dollar rates pared morning gains on rising inflation worries. US CPI data is expected this week and there is buzz that the data would have negative news on inflation front that may lead to sharp selling in US dollar and US bonds. Market has started discounting on expected weakness in the US dollar rates.”

On gold price outlook, Anuj Gupta of IIFL Securities said that gold prices would remain range bound in ₹56,350 to ₹57,100 range on MCX and $1,835 to $1,890 range in international market. He said that above-mentioned range may remain ‘sacrosanct’ till US CPI data becomes public. However, he advised that one should avoid taking short position as overall bias is positive.

ON what US CPI data could mean for gold price outlook, Marc Despallieres, Chief Strategy and Trading Officer at Vantage said, “This week’s week’s U.S. inflation data, which could affect the Fed’s monetary policy trajectory. Investors from worldwide have put their focus on the Federal Reserve rate hike path, triggering additional legs to the US Dollar pullback come this Friday.” However, he also maintained that Tuesday’s key United States event release holds key for the yellow metal price movement.

Giving technical chart pattern standing of gold price, Marc Despallieres of Vantage said, “For technical aspect, four-hour scale RSI indicator 39 figures as of writing, continuing to hover in the neutral level. As for the Bollinger Bands, the price is trading below 20-period moving average, showing that the pair is staying on the backfoot. In conclusion, the price is capped in a narrow range so far this week, and it need a decisive breakthrough to confirm the path in near-term. Currently, gold price is struggling to hold above support at $1,860, and the pair continued to bear downside traction. If the price drops below the current support, it may trigger some technical selling and drag the price deeper.”

Gold prices today eased in morning deals in international market as US dollar opened strong ahead of the US consumer inflation data. Dollar index opened positive and went on to add 0.20 per cent from its previous close and hit 103.677 levels.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.