Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading flat on Wednesday, while the silver rate is up 0.07%. On Multi Commodity Exchange, gold June futures were trading at Rs 60,493 per 10 grams, up Rs 5 or 0.01%. Silver May futures were trading higher by Rs 56 at Rs 75,305 per kg on MCX. Globally, the yellow metal edged lower on Wednesday as the U.S. dollar regained some ground, while traders assessed chances of the U.S. Federal Reserve raising interest rates just once more in May before pausing. Spot gold was down 0.1% at $2,003.03 per ounce, as of 0337 GMT. U.S. gold futures fell 0.2% to $2,016.20. Gold prices was higher on Monday due to low yields and weak dollar “Spot gold is trading a tad lower at $2002 after rising 0.51% yesterday. Spot gold was up on slightly lower yields and weaker Dollar. St Louis Federal Reserve President Bullard said that recession isn’t their base case and the Fed should hike rates further. His peak rate view is 5.50%-5.75%, which is half a percentage point higher than the emerging consensus among traders and Federal Reserve officials. “US housing starts data were better than expected as housing starts declined 0.80% on a monthly basis to 1.42 million units, beating the forecast of 1.40 million units. Building permits for single-family houses were up 2.70% on the month to 871K, which is the highest reading in the last three months. Gold is expected to trade lower as the US Dollar may get support from Mr Bullard’s comments and US housing data. Support is at $1975-$1980 and $1950. Resistance is at $2020, followed by $2035,” said Praveen Singh – AVP, Fundamental Currencies and Commodities Analyst, Sharekhan by BNP Paribas. Spot gold prices reclaim $2,000 level “Gold prices clawed their way back above the key $2,000 level as the dollar and bond yields retreated, with investors weighing whether the U.S. Federal Reserve will pause its interest rate hike cycle after the May meeting. Fed officials comments however capped some gains on the higher side as they raised the prospect for a rate hike in coming meetings. Fed official Bullard in his comments mentioned that the Fed should continue raising interest rates on the back of recent data showing inflation remains persistent while the broader economy seems poised to continue growing, even if slowly. While, Atlanta Fed President Raphael Bostic said the U.S. central bank probably has one more rate rise ahead of it. Meanwhile, the European Central Bank’s (ECB) chief economist backed a further rate increase at the ECB’s next meeting but said its size would depend on incoming data, especially a survey of Eurozone banks. “Bullions also got a boost yesterday on the back of weaker than expected US housing numbers increasing fears regarding overall growth of the economy. Focus today will be on UK and EU CPI data. Broader trend on COMEX could be in the range of $1980-2025 and on domestic front prices could hover in the range of Rs 60,000-60,800,” said Manav Modi, MOFSL.
