Gold rate today opened lower on Multi Commodity Exchange (MCX) and hit two month low during early morning deals on Tuesday. Gold price today on MCX opened at ₹59,401 per 10 gm levels and went on to hit intraday high of ₹59,415 levels within few minutes of commodity market opening. However, profit booking soon triggered and the yellow metal tumbled and hit intraday low of ₹59,395 per 10 gm levels during early morning deals. In international market, gold price was down to the tune of 0.12 per cent at around $1,941.50 per ounce levels.
Silver price today feel the heat of selling pressure and hit intraday low of ₹70,837 per kg levels whereas it made an intraday high of ₹71,000 during early morning session. In international market, the white metal price lost 0.35 per cent in international market and hit $23.06 per ounce levels.
Why gold, silver price fell today
On why gold and silver rate today is under sell off pressure, Navneet Damani, Senior VP – Commodity Research at Motilal Oswal said, “Gold price continue to inch lower as a tentative deal sealed over the weekend to suspend US debt ceiling coupled with jitters around further rate hikes weighed down on the non-yielding metal’s appeal. U.S. President Joe Biden over the weekend mentioned that, he had finalized a budget agreement with House Speaker Kevin McCarthy to suspend the $31.4 trillion debt ceiling until Jan. 1, 2025 and that the deal was ready to move to Congress for a vote.”
Motilal Oswal expert went on to add that US debt ceiling deal includes 2-year debt limit increase that keeps non-defense spending roughly flat, with no budget caps after 2025. On data front, US consumer spending increased more than expected in April, boosting the economy’s growth prospects for Q2. After better than expected US GDP data, Core PCE data was also reported slightly higher.
“Along with this mixed comments from Fed officials have raised rate hike expectations, weighing on safe haven assets,” Navneet Damani of Motilal Oswal said.
According to CME Fed-Watch tool, there is around 60% chance of a 25bps rate hike, which till now was in the favour of a pause. It will be important to keep an eye on updates regarding the debt limit.
Gold, silver price levels to watch on Tuesday
On levels to watch for gold and silver rates today, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold rate today has immediate support placed at $1,920 per ounce levels whereas on MCX, it has support placed at ₹59,000 per 10 gm levels. Similarly, silver rate today has immediate support placed at $20.80 per ounce levels in international spot market whereas it has support placed at ₹70,000 per kg levels on MCX.”