Due to conflicting global indications, the gold rate is trading flat on Wednesday while the silver rate is down 0.48 percent. Gold April futures were down Rs 42 or 0.07% to Rs 57,441 per 10 kilos on the Multi Commodities Exchange. On the MCX, silver May futures were trading for Rs 321 less per kilogramme. While investors evaluated the pace of the U.S. Federal Reserve’s rate hikes following a widely anticipated consumer prices report that revealed still-high inflation, yellow metal prices globally moved up in range-bound trading on Wednesday, according to Reuters.
Spot gold was moving in a $6 range and was up 0.1% at $1,903.64 per ounce. To $1,908.60, U.S. gold futures declined by 0.1%. “Gold prices, which had been gaining steam in the previous sessions, paused as prices fell by more than 5%. Prices were reduced as a result of rising bond yields and the US dollar. After government data indicated U.S. inflation remained strong in February, the Federal Reserve is likely to hike its benchmark rate by a quarter of a percentage point at its policy meeting next week and again in May.
“The CPI grew by 6% in the year ended in February, which was the weakest year-on-year gain since September 2021. According to Prathamesh Mallya, AVP-Research, Non-Agri Commodities and Currencies, Angel One, “We expect gold to trade lower towards 56,850 levels, a break of which could prompt the price to move lower to 56,400 levels. “Gold prices fell on Tuesday despite a little increase in the US dollar index and an increase in U.S. government yields.
“Gold is likely to trade with a negative bias for the day amid higher US treasury yields. However, sharp downside may be cushioned as demand for gold may increase as a hedge against economic uncertainties. MCX gold is expected to break the key support level of 57,250 to continue its downward trend towards the level of 57,000. According to a report from ICICIdirect, MCX silver prices may encounter resistance near 67100 and fall back to 66,400.