Gold Price Today, 8 Sep 2022: MCX gold may trade at Rs 50100-50750; all eyes on ECB monetary policy

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Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading muted on Thursday, even as yellow metal inched higher in global markets. On Multi Commodity Exchange, gold October futures were trading Rs 16 down at Rs 50,490 per 10 grams. Silver prices were up Rs 343 or 0.6 per cent to Rs 54,370 per kg. Globally, yellow metal prices inched higher as a slight pullback in U.S. bond yields and bargain-hunting underpinned the market, although a stronger dollar and aggressive interest rate hike fears limited gains, according to Reuters. Spot gold edged up 0.1% to $1,702.59 per ounce, having dropped to its lowest since Sept. 1 at $1,690.10. U.S. gold futures were little changed at $1,713.30.

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Gold gains ahead of the ECB meeting today where a 75bps rate hike is expected. Dollar index rally was overstretched and yesterday we saw some pullback in the safe haven currency and US 10 yr Treasury yield. This helped in all asset classes gaining some momentum on the upside including gold. The rally in gold might be short lived as the majority of the rally was because of weakness in USD and there weren’t many long positions that got added in open interest. With Sept 20-21 rate hike from Fed near the corner, USD is expected to remain strong making gold vulnerable at the top. Today’s rally is expected to extend as EUR is expected to gain after rate hike from ECB. Resistance in MCX is at 50700 while support is at 50150.

Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services

Gold and silver bounced helped by the dollar’s slight retreat from a two-decade high and as bargain hunters took advantage of recent losses. The Dollar Index continued to hover around its two decade high although, slight pullback from the peak late in the session seemed to offer some respite for gold and silver prices. The U.S. services industry picked up last month, providing ammunition to the U.S. Federal Reserve to deliver another 75-basis-point rate hike capping gains for gold on the higher side. Comments from the Fed Vice chair showed inflation and growth concerns in the speech. Fed Vice Chair Lael Brainard reaffirmed that Fed would take necessary action to calm Inflationary pressure, while also noting the risks of going too far,  Fed should be careful to avoid overtightening. Apart from U.S. initial weekly jobless claims, focus will be on ECB policy meeting and Governor Powell’s speech later in the day. Broader trend on COMEX could be in the range of $1680-1735 and on domestic front prices could hover in the range of Rs 50,100-50,750.

Also read: Indian economy to be hit by global growth slowdown; govt likely to meet annual fiscal deficit target

Pritam Patnaik, Head – Commodities, HNI & NRI Acquisitions, Axis Securities

Gold prices got some much-needed respite as the dollar index lost some of its steam. The USD came off its 20-year highs as the markets prepare to take in ECB’s rate hike decision. The central bank is expected to turn interest rates positive for the first time in 11 years with a 50-basis point hike, as it struggles to combat runaway inflation. Expectations of higher rates from the ECB have bolstered the Euro against the USD, leading to a small relief rally in gold. The sustainability of the same is limited, as the impending Fed rate decision is bound to come back to focus. The market expects gold to trade in a range between $1730 to $1680. A sustained move above or below this range could signal a more definitive trend. Sell on the rise is the recommended strategy.

(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.)