Gold rate today slipped below the psychological $2,000 per ounce levels in early morning deals on Friday as speculations on US Fed rate hike continue to support US dollar. Gold future contract for June 2023 on Multi commodity Exchange (MCX) slipped over ₹200 per 10 gm but sustained above psychological ₹60,000 per 10 gm levels.

According to commodity market experts, gold price today is under pressure as US dollar is still sustaining above ₹101 levels after bouncing back from its one year low of 100.80 levels. They said that US dollar is gaining strength from speculations on US Fed rate hike due to bank crisis in US. They said that gold price has immediate support placed at $1,980 and on breaching that it may go down towards $1,945 per ounce levels. On MCX, they said that gold price may breach its current ₹59,700 per 10 gm support and may go down towards ₹58,500 per 10 gm levels.

US dollar in focus

On what is dragging gold rate today, Anuj Gupta, Vice President — Research at IIFL Securities said, "Gold prices are under pressure due to hawkish commentary by some US Fed officials. Gold price may continue to lose its sheen and go down towards $1,950 to $1,60 per ounce range and on MCX at around ₹58,500 levels in near term. However, I would advised gold investors to keep an eye on the US Fed officials' statement and Dollar Index movement as these two factors are mainly dictating gold price movement across world."

On important levels in regard to gold rate today, market expert Sugandha Sachdeva said, "Gold prices are seen finding strong support at ₹59,700/10gm or $1,980 per ounce mark. As long as the same holds, buying interest is expected to resume. On the other hand prices are likely to witness hurdle at ₹60,750/10gm mark on their way up. Only a move past the same would lead to strong gains for the precious metal towards ₹61,500/10gm mark. The greenback strengthened as manufacturing activity in the New York state expanded in April for the first time in five months adding to concerns about further rate hike at the Fed’s May meeting."

Unveiling bottom fishing strategy in regard to gold investment, Anuj Gupta of IIFL Securities said, "One should wait for more correction as US Fed meeting is scheduled next week and there can be some more downside taking place in yellow metal price. In international market, gold price may go down towards $1,950 to $1,950 levels and this would be a good supply zone for gold investors. On MCX, ₹58,500 to ₹58,800 per 10 gm is a good supply zone where one can think of bottom fishing."

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.

ABOUT THE AUTHOR Asit Manohar Chief Content Producer at Live Mint Digital Team Read more from this author