Gold Price Today, 10 October 2022: Gold gets cheaper, prices fall over Rs 500 on strong US jobs data
Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate in India were trading weak on Monday as the yellow metal fell in the international markets. On Multi Commodity Exchange, gold December futures were ruling Rs 542 or 1.04 per cent down at Rs 51,418 per 10 gram, as against the previous close of Rs 51,960. So far this financial year, MCX gold has fallen more than 1 per cent. Silver December futures were ruling Rs 1451 or 2.4 per cent down at Rs 59,334 per kg on MCX. Globally, yellow metal prices ticked lower, having shed nearly 1% in the previous session, as strong U.S. jobs data cemented the view that the Federal Reserve would continue its policy of aggressive interest rate hikes, according to Reuters. Spot gold was down 0.1% at $1,693.19 per ounce, while U.S. gold futures were down 0.4% at $1,703.4.
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Gold and silver market lacks solid bullish conviction to see a sustained rally for now. Many investors continue to sit on the sidelines as the Federal Reserve and the U.S. dollar dominate financial markets. Gold investors have to be patient and focus on the long-term potential. Once the Fed is done raising rates, gold will be the best trade. This week, gold has resistance at 52700 while support at 50200. We might see huge volatility this week during CPI data but any dips near 50500 would be an ideal opportunity to go long as gold is in an oversold region and any short squeeze will bring prices up till 52700. In MCX, because of the weak rupee, prices are not in oversold region but in COMEX, prices are in oversold region so wait for any dip to go long after US CPI data.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
COMEX Gold trades lower by 0.60% close slightly below the $1700/oz mark. Last week Gold closed 1.7% higher but retreated from higher levels and closed near $1700/oz as signs of a robust US labor market added to bets of another 75-bps rate. Although strong NFP print has brought back the bears in action geopolitical tensions and recessionary fears might keep gold supported. $1740/ oz remains a strong resistance which if taken out on a daily closing might take the price further higher towards $1780/oz. On the flipside a sustained break below $1670/oz might bring back the bears in action.
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Deveya Gaglani, Research Analyst, Axis Securities
A frail attempt by gold to breach and sustain above $1720 was put to an end by better than expected non-farm payroll data, which again renewed the prospect of aggressive rate hike and expectation of hawkish policy, going forward. However, the geopolitical tension still persists, and correction in the dollar index may find buying interest at the lower levels. Strong support in Spot Comex Gold is seen around $1670 level. As long as the mentioned level is intact, we expect prices to trade sideways in a range between $1670 and $1720 level.
(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.)
