Gold price today: Weaker dollar supports yellow metal but hawkish Fed could cap gains

Gold prices rised slightly in global markets on Tuesday as the dollar fell from a 20-year high, offsetting pressure from expectations the U.S Federal Reserve kept interest rates higher for longer to combat inflation broadcast. Spot gold was up 0.1% to $1,739.1 an ounce. Morning, gold contracts traded were down 0.29% on the Multi Commodity Exchange (MCX) at Rs 51,101 per 10g and silver was down 0.7% at Rs 53,949 per kg.

“Gold has resistance at Rs 51,500 and support at Rs 50,800 levels on the MCX. The silver December contract has resistance at Rs. 56,000 and support at Rs. 54,400 levels. Gold prices were supported by dollar weakness, which retreated from 20-year highs. We expect gold prices to trade sideways to down today with COMEX Spot gold support at $1720 and resistance at $1760 per ounce,” said, Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

October MCX Gold support stands at Rs 50,900 and resistance at Rs 51,500 levels for 10 grams. Profit bookings in the greenback led to a brief rally in gold in trading yesterday. The U.S. dollar weakened against the euro as the ECB announced that it would proceed with more aggressive rate hikes than initially thought. The outlook for gold does not look too rosy as a hyper-hawkish Fed will continue its aggressive rate hike plans in an effort to bring inflation back close to 2%, which is still a long way off, said, Pritam Patnaik, Head – Commodities, Axis Securities.

They appear to have sacrificed monetary increase for inflation control, which says plenty approximately their resolve. Despite the weak point witnessed in inventory and forex markets, gold has visible confined inflows as a secure haven. But, this will change, if the monetary outlook worsens, offering a little assistance to prices. Considering the destiny hike can be statistics-driven, all effective statistics factors will cause a better opportunity for a hike and positioned strain on bullion. Sell on rising, he added.

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