Gold price jumps after US government bond rout. Opportunity to buy?

livemint.com:

Gold rate today: On account of profit booking trigger in US dollar leading to rout in US government bonds, gold price today went up during early morning deals. Fold future contract on Multi Commodity Exchange (MCX) for December 2023 expiry opened higher at ₹56.825 per 10 gm and went on to hit intraday high of ₹58,880 levels within few minutes of commodity market's opening bell today. In international market, gold price is quoting aound $1,828.50 per ounce levels.

Likewise, silver rate today opened upside at ₹67,450 per kg levels on MCX and went on to hit intraday high of ₹67,539 per 10 gm within few minutes of market's opening bell. In international market silver prices are oscillating around $21 per ounce levels. On why gold and silver prices are witnessing buying interest today, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “Crude prices have lowered in recent times from around $96 per barrel to $86 per barrel levels, which sparked speculations about no US Fed rate hike in November meting.

As US dollar index had climed to record 11-month high and it was in overbought condition as well, profit booking in US dollar began." “We expect Rupee to trade with a negative bias amid risk aversion in global markets and a hawkish tone of most Federal Reserve officials. US Dollar index may bounce back again if US treasury yields continue to rise. However, softening of crude oil prices may cushion the downside.

Any intervention by the RBI may also support Rupee at lower levels. Traders may take cues from Services PMI, ADP non-farm employment and factory orders from US. Market participants may remain cautious ahead of RBI’s monetary policy meeting later this week.