MCX Gold Forecast for Today: After being under pressure and a series of negative returns, gold prices snapped the losing streak and concluded Tuesday’s session on a positive note. The yellow metal ended Tuesday’s session at 0.14% higher.
- Market sentiment remains sluggish as holiday in Japan restricts bond moves, pre-data caution also challenges Yellow Metal traders.
- Bullion bears await the clear signs of Fed’s 75 bps rate hike in December.
- Gold price rebounds from intraday low to pare recent losses ahead of the key catalysts.
- Fed minutes and flash PMIs in focus
- MCX Natural Gas Jackpot Call: All Target Achived 504 to 544.50
US Federal Reserve raised interest rates
The US Federal Reserve raised interest rates by 75 basis points for the fourth time earlier this month, and now investors are waiting for the minutes of the meeting to see if there will be any more rate increases. Although gold is regarded as an inflation hedge, rising US interest rates reduce the appeal of non-yielding bullion. We expect gold to trade lower towards 51,990 levels, a break of which could prompt the price to move lower to 51,780 levels.
COMEX Spot Gold Trade
COMEX Spot gold trades flat near $1740/oz after a muted ending on Tuesday. Gold has been trading steady since it fell by 0.86% at the start of the week. US Dollar Index (DXY) is trading slightly lower after a 0.57% drop in the previous session. DXY recovered to trade as high as 107.47 but didn’t sustain as 107.50 is good support turned resistance.
Gold and US Dollar are driven by hopes of a smaller rate hike by the Fed in its upcoming meetings. Focus will now shift to flash PMI numbers from the US along with the FOMC meeting minutes. Weaker PMI print and a dovish language in FOMC minutes might be supportive for gold. On the price front if the price sustains below $1730 zone on a closing basis the correction might deepen towards $1705 or else recovery can be seen till $1765/oz.