Gold Rate Today, Gold Price on 14 June: Gold rates gain on expectations of a rate hike pause from US Fed, softening dollar – Gold Price Forecast, Gold Price Outlook

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading with gains on Wednesday, while the silver rate is up 0.44%. On Multi Commodity Exchange, gold August futures were trading at Rs 59,355 per 10 grams, up Rs 137 or 0.23%. Silver July futures were trading higher by Rs 315 at Rs 72,409 per kg on MCX. 

Globally, prices of the yellow metal edged up on Wednesday, helped by a softer dollar as investors looked to the Federal Reserve’s much-awaited policy decision after the U.S. inflation print cemented bets for a pause in interest rate hikes, according to Reuters. Spot gold rose 0.2% to $1,947.25 per ounce while U.S. gold futures edged higher 0.1% to $1,960.50.

Core CPI rises in US, affecting gold rate

“COMEX Gold prices tumbled almost 0.5% and closed at $1958.6 per troy ounce on Tuesday, despite a decline in the greenback as investors pushed back against rate cuts later this year, following an elevated core CPI. The yield on the US 10-year Treasury note rebounded to approximately 3.8% after hitting a session low of 3.682% on Tuesday. The headline inflation declined to 4% in May 2023, the lowest since March 2021, slightly below market expectations of 4.1%. However, the core CPI rose by 0.4% from a month earlier in May of 2023, matching market estimates. Swap traders put the odds of an increase at only 10%, while still seeing the potential for a July Fed hike. 

“At the same time, expectations of a quarter point rate hike by the year end have been pushed back, weighing down on the bullions. FOMC policy decisions, press conferences and projections will be in focus for the day. Fed is expected to keep the rates unchanged, however, might be hawkish amid the backdrop of elevated core CPI. SEP might show another quarter point hike in July and zero rate cuts for 2023, which might weigh down on gold prices,” said Ravindra V. Rao, CMT, EPAT, VP – Head Commodity Research, Kotak Securities. 

Gold prices trade with gains

“Gold prices traded marginally up, with spot gold at Comex was trading up by 0.24% at $1948 per ounce in the morning session. In the previous session, gold rate fell nearly 0.70% on the back of a rally in US treasury yields, waning expectations that the Federal Reserve will reverse its aggressive monetary-tightening policy this year. 2-year treasury yields rose on Tuesday to the highest levels since March, which is generally negative for non-yielding metals. On the macro front, US consumer inflation rose at a 4% annualized clip in May, in line with the consensus estimate.

“We expect gold prices to consolidate at the lower end with a negative bias. The Comex gold price has immediate support at $1933 per ounce and resistance at $1975 per ounce. MCX Gold August futures have support at Rs 59,095 per 10 gram and resistance at Rs 59,850 per 10 grams,” said Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities.