Gold prices are expected to experience a dip ahead of the US Fed meeting scheduled for May 2023. Experts predict that the prices may drop to levels between $1,950 to $1,960 per ounce. This prediction is based on the current speculations on the US Fed rate hike, which is said to be supported by the bank crisis in the US.
Experts believe that the dollar rate today on MCX has a strong support placed at ₹58,500 per 10 gm levels. This support is expected to prevent a further dip in the price of the dollar. However, the dollar's strong performance is causing the gold rate to slip below the psychological $2,000 per ounce levels in early morning deals on Friday.
The speculations on the US Fed rate hike are continuing to support the US dollar and are causing the gold rate today to slip below the psychological $2,000 per ounce levels. Gold future contract for June 2023 on Multi commodity Exchange (MCX) has also slipped over ₹200 per 10 gm but sustained above psychological ₹60,000 per 10 gm levels.
Commodity market experts suggest that the gold price today is under pressure due to the US dollar's strength. The US dollar is still sustaining above ₹101 levels after bouncing back from its one-year low of 100.80 levels. They predict that gold price may breach its current ₹59,700 per 10 gm support and may go down towards ₹58,500 per 10 gm levels.
Forex investors are advised to keep an eye on the US Fed officials' statement and the dollar index movement as these two factors mainly dictate gold price movement across the world. Anuj Gupta, Vice President - Research at IIFL Securities suggests that gold prices may continue to lose its sheen and go down towards $1,950 to $1,960 per ounce range and on MCX at around ₹58,500 levels in the near term. Gupta advises gold investors to wait for more correction as US Fed meeting is scheduled next week, and there can be some more downside taking place in yellow metal price.