Gold price today, 13 Sep 2022: MCX gold gets cheaper, down over Rs 250, US CPI inflation to guide yellow metal

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Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading lower on Tuesday, yellow metal firmed up globally. On Multi Commodity Exchange, gold October futures were ruling Rs 276 or 0.6 per cent down at Rs 50,355 per 10 gram, as against the previous close of Rs 50,631. Silver December futures were trading Rs 463 or 0.8 per cent down at Rs 57,028 per kg. Globally, yellow metal prices held firm near a two-week high hit in the previous session, helped by a subdued dollar, while investors awaited U.S. inflation data that could provide cues on the Federal Reserve’s interest rate hike path, according to Reuters. Spot gold rose 0.1% to $1,725.70 per ounce, and US gold futures were down 0.2% at $1,736.80.

Also read: Inflation likely to stay 6.5 -6.7% range in coming months; Industrial growth to remain robust

Gold prices held firm after a rally witnessed in the past few sessions, hovering near two-week high, helped by a subdued dollar, while investors awaited U.S. inflation data that could provide cues on the Federal Reserve’s interest rate hike path. As the Dollar index and U.S. Yields witnessed pressure in the earlier session and a rally was witnessed in the both gold and silver prices. Although some profit booking could be on cards after a much awaited upside by market participants. According to the CME fed watch tool there is a 90% probability for one more 75bps rate hike to combat inflation. Germany’s economy, Europe’s largest, will contract next year as a dramatic rise in energy costs due to the war in Ukraine extinguishes the chances of recovery after pandemic-related lockdowns, the Ifo institute said. Focus today will be on U.S. consumer price data, where the expectation is that headline inflation could rise by 8.1% YoY in August versus 8.5% in July. Broader trend on COMEX could be in the range of $1700-1750 and on domestic front prices could hover in the range of Rs. 50,150- 50,870.

Also read: Inflation may cool off in next 2 quarters, another 50 bps RBI repo rate hike likely in September

Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities

Gold had recovered somewhat after both US Treasury securities and the Dollar index softened from $110.23 to $108.18 in a couple of trading sessions. Today’s US CPI will guide gold movement further although 75bps rate hike on 21st sept is already factored in by the market. Until now hedge funds had increased their long positions in USD and profit taking was due which would short squeeze precious metals and that is what is happening right now where silver market rallied 6% at the start of the week as there were heavy shorts in that counter (bearish bets was at 3 year high). Nothing has changed fundamentally and the global backdrop continues to favor the dollar and U.S. assets in general. We believe any confirmed trend will only emerge after the US Fed meet where the Fed will give further ideas about raising interest rates. In MCX 50780 is proving to be strong resistance as since past three trading sessions, gold has reversed from that zone. So go long only above that level.

Tapan Patel, Senior Analyst – Commodities, HDFC Securities

Gold prices held steady on Tuesday with spot gold prices at COMEX were trading near $1722 per ounce in the morning trade. MCX Gold October futures opened lower near Rs. 50424 following stronger rupee. Gold prices are trading firm supported by a weaker dollar as market players are awaiting key US CPI data. We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1710 and resistance at $1740 per ounce. MCX Gold October support lies at Rs. 50200 and resistance at Rs. 50800 per 10 gram.

(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.)