Gold Price Today, 2 June 2022: Gold prices fall on lower US Treasury yields; buy on dips near Rs 50600

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were flat to negative in Indian markets on Thursday, even as yellow metal held its ground. On Multi Commodity Exchange, gold August futures were trading Rs 56 or 0.11 per cent down at Rs 50,809 per 10 gram. Silver July futures were ruling Rs 195 or 0.32 per cent down at Rs 61,385 per kg. Globally, yellow metal held its ground on Thursday, supported by lower U.S. Treasury yields, after mounting concerns over stubborn inflation worldwide helped prices rebound from their lowest level in two weeks in the previous session, according to Reuters. Spot gold was steady at $1,847.49 per ounce, while U.S. gold futures were up 0.2% to $1,851.40.

Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities

Yesterday we saw gains in both Dollar and Gold as market sentiment shifted its focus to inflation from raising rates. Higher inflation was supportive to both US dollar and Gold, even if the US Fed raises rates aggressively; inflation is not going to drop unless energy cost remains elevated. Gold was in red for the second month in row as the US Fed focused on bringing inflation down which benefited the Dollar. The US President’s top priority is also to bring inflation down which is why the market was focused on rate hikes. But with elevated energy prices and no solution seen for price correction in energy, investors are diversifying from safe haven treasuries and investing in gold. Intraday we would recommend buy on dips near 50600 for expected target of 51000 and stoploss of 50400.

Tapan Patel, Senior Analyst — Commodities, HDFC Securities

Gold prices traded weak on Thursday with spot gold prices at COMEX were trading marginal down near $1845 per ounce in the morning trade. MCX Gold Aug futures opened lower near Rs. 50810 per 10 gram. Gold prices capped upside on a stronger dollar after recovering on Wednesday. The inflation worries and recession fears may keep gold prices firm on safe haven buying despite a stronger dollar. We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1830 and resistance at $1860 per ounce. MCX Gold August futures support lies at Rs. 50600 and resistance at Rs. 51200 per 10 gram.

Jigar Trivedi, Manager — Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers

Yesterday, Gold recovered from their lowest level since 19th May as investors looked towards safe-haven bullion amid broadening inflationary pressures. Gold may advance as investors assess developments in the Fed’s path to monetary tightening as inflation and rising volatility weigh on economic prospects. Fundamentals overall are supportive for gold, but not aggressively so as the markets try to figure out whether we’re in inflation, stagflation or recession. MCX Gold August may rise to Rs. 51,050 per kg.

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

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