Gold price today: Yellow metal jumps as dollar dips ahead of ECB meeting

Gold price today: Yellow metal jumps as dollar dips ahead of ECB meeting

Market


Gold price today: Amid buzz of European Central Bank (ECB) raising interest rate up to 75 bps in its monetary policy meeting scheduled on 21st July 2022, dollar index eased a bit in early morning session on Monday. This ease in dollar price led to steep rise in gold price in domestic and spot market. On Multi commodity Exchange (MCX) gold rates went up 256 per 10 gm to 50,363 levels, logging more than half per cent rise in early morning session. Spot gold price added near $9 per ounce and hit $1715 levels, logging around 0.54 per cent rise in early morning session on Monday.

Speaking on gold price rebound, Sugandha Sachdeva, Vice President — Commodity & Currency Research at Religare Broking Ltd said, “Gold prices look to witness a rebound in today’s trade after five consecutive weeks of decline as the dollar index has eased slightly from its two-decade highs, which is working as a key tailwind for prices. In the immediate short term, prices are underpinned by the psychological support of $1700 per ounce, which can lead to a recovery in prices towards $1720 per ounce ( 50,500 per 10 gm on MCX) initially and then $1730 per ounce ( 50, 800 per 10gm on MCX) mark. The odds of a 100 bps rate hike have dimmed slightly as two key Fed officials have supported raising rates by 75 bps at the Fed’s forthcoming meeting, which has suppressed the dollar index and is boosting gold prices.”

Advising two way trade to gold traders, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold price is expected to trade range-bound between $1700 to $1730 per ounce levels ahead of the ECB meeting. On MCX, it is expected to trade between 50,000 to 50,900 per 10 gm levels. Bulls can buy gold at around 50,200 for the target of 50,700 levels whereas bears can sell gold with stop loss of 50,950 for the target of 50,200.”

Anuj Gupta of IIFL Securities asked gold investors to keep an eye on Russia on 21st July and see whether it resumes the gas flow services through the Nord Stream 1 pipeline or not.

“As long as the precious metal does not close above the 51,500 per 10 gm mark, prices remain vulnerable to further decline towards the key support zone of $1680 to $1675 per ounce. As of now, the trend doesn’t look very promising in the near term, but the possibility of a bounce back cannot be ruled out,” said Sugandha Sachdeva of Religare Broking.

Silver price today in spot market also went up 0.60 per cent to $18.80 per ounce levels.

On Friday, gold price had ended in negative zone on fifth successive week as dollar index climbed up to its 20-year high of 109.30 on Thursday. However, it retraced from is 20 years high on Friday.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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