Gold Price Today, 9 November 2022: Gold prices fall, intraday outlook seems bullish; buy on dips

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate were trading in red in India on Wednesday on the back of flat trends in the international market. On Multi Commodity Exchange, gold December futures were ruling Rs 164 or 0.32 per cent down at Rs 51,466 per 10 grams. Silver December futures were trading at Rs 61,700 per kg, down Rs 259 or 0.4 per cent on MCX. Globally, Gold prices were little changed on Wednesday, near a one-month high hit in the previous session, while focus shifts to U.S. inflation data due later this week, according to Reuters. Spot gold was 0.1% down at $1,709.80 per ounce. U.S. gold futures fell 0.1% to $1,714.10.

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Yesterday gold prices surged nearly $50 ahead of the US midterm election. Yesterday’s rally was a follow up move from Friday when the US dollar started retracing helping gains in gold. Gold is now at a four week high and has breached the psychological level of $1700. A divided government means the US may not expect a fiscal stimulus response next year when the economy goes into recession. Next gold will take cue from the US dollar and any move from the US dollar will have a reverse mirror effect on gold prices. After yesterday’s strong move, intraday gold could take some breather and would wait for election results before taking any further direction. We would wait for gold to settle at lower levels around 51300 before recommending a long with stoploss of 51100 and target of 51650 intraday.

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Jigar Trivedi, Senior Research Analyst – Currencies & Commodities, Reliance Securities

MCX Gold December futures ended the session at Rs. 51,630 per 10 grams, up by 1.4% or 700 points after the Comex Gold closed above $1,710 an ounce amid broader dollar weakness. The dollar dropped for the third consecutive session. It weakened below the 110 mark, a level not seen in almost two weeks, as risk appetite returned to the markets with attention turning to the midterm elections. Investors also await key US inflation data later this week that could influence the size of the Federal Reserve’s rate hike in December. Markets are betting that the Fed will hike rates by 50 basis points in December after delivering four successive 75 basis point rate increases. Attention is on the start of voting in the U.S. midterm elections later in the day, with the Republicans widely expected to take control of the House of Representatives, potentially preventing President Joe Biden’s legislative agenda. No major economic data will come from the US side tonight. For intraday the outlook is bullish but we recommend buy on dips.

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

Gold price inched higher hovering near their one month high, trading above the psychological $1680 mark. Dollar index slipped to its 1 and half month lows, falling below 110 level; while the U.S. 10Y yield was down by ~2% in yesterday’s session supporting the move in gold and silver prices. After the Fed announced its fourth 75 bps rate hike last week, market participants are expecting an ease off in the pace of interest change in the Dec meet. The labour market continues to show some tightening as shown in the previous week’s jobs number, market participants keep their eye on the inflation number scheduled tomorrow for further clarity. Few ECB policymakers in their comments mentioned that the central bank will continue to raise borrowing costs even as the euro zone economy suffers because letting inflation stay high would be even more painful. Bullions also witnessed some safe haven buying on the back of uncertainty related to the U.S. midterm. Broader trend on COMEX could be in the range of $1680-1720 and on domestic front prices could hover in the range of Rs 51,250-51,950.

(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.)