Investors Are Being Cautious About Volatility, Gold Rates Quoted At Rs. 47,850 In India

Investors in the Indian markets are being cautious about their portfolios for both equities and alternative investments, where gold plays a major role. Consistent hikes in the inflationary pressures in the global picture are influencing major economies to raise their interest rates. So, the government bond yields are much more profitable compared to gold. Additionally, with these rate hikes, if the inflation rate falls, equities will boom and the gold market will be under pressure again. However, the US employment market is another influencer of gold along with inflation, interest rate hikes, and the US dollar index. A recent report by ADP stated that the US nonfarm payroll has gained by 128,000 in May from April, however, missed the estimated. So, investors are being cautious now.

Today, the Nifty and Sensex both are bearish, but the gold rates have gained marginally. On June 6, the 22 carat gold rate is quoted at Rs. 47,850 gaining by Rs. 110, and the 24 carat gold rate is quoted at Rs. 52,200/10 grams, gaining by Rs. 110 today.
Commenting on the support price and resistance price, Tapan Patel, Senior Analyst (Commodities), HDFC Securities, told the media, "We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,840 and resistance at $1,870 per ounce. MCX Gold Aug support lies at Rs. 50,800 and resistance at Rs. 51,300 per 10 gram."

Additionally, according to Ravi Singh, Vice President and Head of Research, ShareIndia said, "ECB meeting, US inflation data, and RBI MPC meeting will likely influence gold prices. Movement of the dollar index and US treasury yields will be the key driver of gold prices." The Comex gold futures were quoted at $1855.80/oz, gaining by 0.30%, from the last trading day. Yesterday it was last quoted at $1850.20/oz. The spot gold prices were last quoted at $1853.30/oz, gaining by 0.05%, from the last trading day. The US dollar index in the spot market stood at 102.00, falling by 0.11%. In India, the Mumbai Commodity Exchange (MCX) gold in August future was quoted at Rs. 51,001/10 grams, gaining by 0.06%, from the last trading day.