Gold Prices Gain Overseas As Dollar Recedes: Check Outlook For This Week

Gold prices internationally as of writing this copy at around 11:36 am (IST) or 2:01 NY time is quoting higher by 0.37% at $1714.90 per ounce. This is as dollar has receded after the bets on aggressive Fed rate hike have lessened. Even though the latest US CPI numbers at a 41-year high led calls of an even steeper rate hike of 100 bps or 1%, some of the policymakers vote for a 75 bps hike in the upcoming July meet.

Also, at the same time, there is a stand that the Fed would return to a rate cut take sooner than expected in order to avoid a prolonged recession.

Meanwhile, back home, gold on the MCX is upbeat and mirroring international trend. At the time of writing this story, gold August futures traded higher by 0.61% or Rs. 304 per 10 gm at Rs. 50,406 per 10 gm. Also, silver futures for September gained even more and swiftly crossed Rs. 55,000 per kg levels.

Gold prices in retail market in India

After softening by almost Rs. 1000 per 10 gm last week, gold price in Mumbai for 22K is priced at Rs. 46,190, while for 24K gold it is Rs. 50,390 per 10 gm. Note these rates are just indicative and do not include VAT and other levies.

Outlook for gold for the week to July 22, 2022

There is anticipated a weak outlook for the bullion for the week ahead. As per IIFL Securities-VP Commodity and Currency Research-there is advised a sell call on both gold and silver. Inflation is the significant and going ahead there shall be a rate hike by the US Fed which is weighing on the bullion prices. Also, there is seen month-on-month decline in net inflows in instuments backed by gold such as gold ETFs.

Technically, support in August Gold futures is seen at Rs 49600- Rs 49200. Meanwhile, resistance is seen at Rs 50700-51300 levels. As for international prices support is at USD 1670-1650 while resistance is seen at USD 1735-1770, Gupta is mentioned as saying in a leading dailies.