Gold rate saw a sell off in early morning deals due to a surprise output cut announced by OPEC plus countries on Sunday. The MCX futures contract for April 2023 opened lower and hit an intraday low of ₹59,060 per 10 gm. In international spot market, gold price fell 0.90% to $1,950 per ounce. 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
Gold and silver are both close to their support levels, but general attitude on the precious metals market is still bullish, according to experts. They advised continuing to buy on dips because the present decline in the price of gold and silver can be ascribed to the US dollar’s relief bounce. They claimed that the unexpected oil production decrease proposed by OPEC and other nations has increased worries about inflation and will help the price of gold. Analysts argued that if crude oil prices remain between $80 and $90 per barrel, fears about inflation may cause economic downturn rumours to acquire traction. Gold and silver prices have fallen due to a relief rally in the US dollar and Dollar Index, but OPEC’s surprise production cut has raised fear of inflation.
Strategy for gold, silver investors
The $2000 per ounce mark is serving as a key barrier in the international markets, while the Rs. 60600 per 10gm mark is still a short-term hurdle in the June contract, according to market experts on the outlook for gold prices. The only way to further trigger an increase in prices is to make a strong move past these crucial levels. Gold prices may experience some selling pressure in the upcoming days due to waning concerns about the US banking sector and a resurgence of “risk on” activity in international markets. Support is expected at Rs. 58000 per 10gm and then Rs. 56700 per 10gm.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.