Gold price today: Rates retrace from week high after better-than-expected US GDP data. Right time to buy?
2 min read 28 Jul 2023, 10:36 AM ISTGold rates today is in base building mode and it is trading in $1,935 to $1,985 per ounce range, say commodity experts
PremiumGold rate today: After hitting week highs during Thursday deals, gold prices witnessed profit booking trigger ahead of commodity market's closing bell. Gold future contract for August 2023 expiry on Multi Commodity Exchange (MCX) came close to ₹59,000 per 10 gm levels, erasing entire weekly gains. In international market, yellow metal price is currently oscillating around $1,951 per ounce levels whereas on MCX, gold price is around ₹59,200 per 10 gm levels.
Likewise, silver rate today is oscillating around ₹73,800 per kg levels on MCX whereas in international market, silver price today is around $24.20 per ounce levels (On Thursday morning, silver prices in international markets were above $25 levels).
What pulled down gold prices
According to commodity market experts, gold and silver prices retraced from week highs after better-than-expected US GDP data and jobless claim data. They said that gold prices are currently in base building mode and the precious metal is oscillating in $1,935 to $1,985 per ounce range. They said that after the upbeat US economic data gold prices are expected to remain under pressure in near term and it may further dip by $10 to $15 dollar in international market. However, they expected value buying at support levels.
On why gold prices crashed on Thursday evening, Amit Sajeja, Vice President — Research at Motilal Oswal said, “Gold and silver rates today is under heat due to better-than-expected US GDP and other economic data. This triggered profit booking at week high levels as there was no further trigger for any upside. In fact, gold prices are in $1,935 to $1,985 per ounce range and the yellow metal may further go down towards $1,935 per ounce levels after the release of positive US economic data."
Expecting bounce back from support levels, Anuj Gupta, Vice President — Research at IIFL Securities said, “We can witness value buying around $1,945 to $1,940 levels in international market whereas bottom fishing is expected below ₹59,000 levels on MCX."
Anuj Gupta of IIFL Securities said that gold price has strong support placed at ₹58,600 per 10 gm levels and this support may remain sacrosanct in current profit booking trigger. He advised gold investors to maintain stop loss at ₹58,500 levels on MCX.
US GDP data
In April to June 2023 quarter, US gross domestic product rose at 2.4 per cent in year-on-year terms after a 2 per cent pace in January to March 2023 quarter, the Commerce Department’s initial estimate showed on Thursday. Consumer spending grew1.6 per cent in this time, more than forecast, after surging at the start of the year.
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.
