Gold rates today under pressure as US dollar hits one week high before US Fed meeting
Gold rate today: Ahead of US Fed meeting and speculations about 25 bps rate hike, US dollar (USD) climbed to one week high putting gold, silver and other assets under pressure. Gold future contract for August 2023 expiry on Multi Commodity Exchange (MCX), opened lower at ₹59,241 per 10 gm levels and went on to hit intraday low of ₹59,055 levels within few minutes of commodity market's opening bell. In international market, gold price today bounced back from intraday low of $1,954 per ounce levels and hit intraday high of $1,963 levels during early morning trade in various Asian markets.
Silver rate today opened higher at ₹74,379 per kg levels on MCX. But, the white precious metal witnessed profit booking on higher levels and soon came down to the intraday low of ₹74,268 levels. In international market, silver price is oscillating around $24.50 per ounce levels, adding around 0.80 per cent during early morning deals on Tuesday.
On why gold prices are under pressure today, Anuj Gupta, Vice President — Research at IIFL Securities said, “Market is speculating 25 bps US Fed rate hike in the US Fed meeting scheduled on Wednesday this week. Due to this buzz, US dollar has bounced back to one week highs from its 15-week lows. This has put gold, silver and other assets under pressure as investors are awaiting the outcome of US Fed meeting." Deveya Gaglani, Research Analyst - Commodities, Axis Securities said, “The dollar index gained more than one per cent last week and settled above the resistance zone of 101 level.
Gold price is trading lower in the morning session as we head towards a data-heavy week. All eyes will be on the US Fed meeting this week, where the market discounts the 25 bps rate hike. Investors and traders
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