Gold rate today witnessed some sell off heat in early morning deals as oil prices surged over 5 per cent after surprise output cut announced by the OPEC plus countries on Sunday. Gold future contract for April 2023 on Multi Commodity Exchange (MCX) open lower on Monday and went on to hit intraday low of ₹59,060 per 10 gm in domestic market. In international spot market, gold price descended to the tune of 0.90 per cent and hit $1,950 per ounce levels.
Silver rate today opened downside and went on to dip to the tune of 0.95 per cent. MCX silver future contract for May 2023 opened lower at ₹71,811 per kg and went on to hit intraday low of ₹71,437 levels within few minutes of market opening. In international spot market, silver price lost over 2 per cent and hit $23.58 per ounce levels.
Triggers for gold rate today
According to bullion market experts, both gold and silver are near to its support levels but overall sentiment is still bullish. They said that one should maintain buy on dips as current falling gold and silver price can be attributed to the relief rally in US dollar. They said that surprise oil production cut announced by OPEC plus countries has raised concern over inflation and it would support gold price. Experts maintained that due to rise in inflation concern, speculations about economic slowdown may gain momentum if crude oil price sustains in $80 to 90 per barrel range.
On why gold and silver prices have fallen today, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold and silver prices have fallen today due to relief rally in US dollar and Dollar Index regaining the psychological 102 levels. However, OPEC plus countries surprise announcement to cut production has raised fear of inflation. If WTI crude oil sustains in between $80 to $90 per barrel range, it would put current account deficit (CAD) of most of the countries across globe, providing fodder to speculations in regard to economic slowdown. So, in that case, gold prices are expected to emerge as investors’ haven.”
Strategy for gold, silver investors
Anuj Gupta of IIFL Securities advised gold and silver investors to maintain ‘buy on dips’ strategy as overall sentiment for gold and silver is sideways to bullish. He said that gold price is in $1,945 to $1,980 per ounce range whereas silver rate today is in $22 to $24 per ounce range.
On gold price outlook, market expert Sugandha Sachdeva said, “Gold prices seem prone to the risks of profit booking where the level of $2000 per ounce mark is acting as a major barrier in the international markets, while the Rs.60600 per 10gm mark remains near-term resistance in the June contract. Only a convincing move past these key levels would further lead to a flare-up in prices. With concerns about the US financial sector receding and revival of “risk on” trade in the global markets, gold prices may give way to some selling pressure in the coming days, where support is seen at Rs.58000 per 10gm mark and then Rs.56700 per 10gm mark.”
