Gold rate today (May 3, 2023):​ Yellow metal in the domestic market on Wednesday traded in green above the Rs 60,000 level amid uncertainty over monetary policy before a Federal Reserve rate decision.

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Last seen, on MCX, gold futures (June 5) was up by 0.16 per cent or Rs 99 at Rs 60,727 per 10 grams. MCX Gold June futures traded between the range of Rs 60,707 and Rs 60,765 on May 3, 2023. Meanwhile, Silver futures (July 5) was up by Rs 112 or 0.15  per cent at Rs 76,360 per kg. 

In the international market, COMEX gold traded at $2026.8 per ounce.

"The COMEX gold extended previous session gain in Asian trade on renewed fears of a banking crisis and uncertainty over monetary policy before a Federal Reserve rate decision. The yellow metal rose sharply after U.S. bank stocks faced a flurry of selling, and the government-brokered takeover of First Republic Bank by JPMorgan Chase & Co sparked concerns that several other regional U.S. lenders were facing solvency issues. The dollar index is trading at 101.50 level . The COMEX gold is having support near $2,015 and resistance at $2,038," said NS Ramaswamy, Head of Commodities, Ventura Securities.

Spot gold traded flat in the international market and stood at $2,017.5 per ounce which was flat by 0.04 per cent.

"Traders are expected to be cautious ahead of the US ADP data and US FOMC monetary policy decision today. The US Federal Reserve is expected to hike rates by 25 bps tonight; however, major focus will be on clues to a possible pause in its rate hike spree and the Central Bank's take on the banking turmoil, said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.

He added the yellow metal faces a strong resistance at $2020 followed by $2050 as the key level before it may approach its all-time level around $2075. Support is seen at $2000/$1977. 

What analyst suggests?

"Overall with data related to JOLTS Job openings also pointing to a slowdown in Jobs growth, Gold benefitted of same. However we could see volatility ahead of the crucial Fed meeting as any hawkish scenario by the Fed chair could see lower side moves, while expectations remain of a Slightly dovish stance to persist in the outcome of today's meeting," Neha Qureshi, Senior Technical & Derivative Research Analyst, Anand Rathi Commodities & Currencies.

Qureshi suggests buying gold June futures on dip at 60,300 keeping a stop loss of Rs 60,100 and a target price of Rs 60,700. For the Silver July contract, she suggests buying on dip at Rs 75,500, with a stop loss of Rs 74,500 and a target of Rs 77,500.

Gold price history

Gold prices in India have fluctuated in 2023. The price of gold has increased considerably since 2022. The yellow metal's price grew by roughly Rs.3,000 in the first six months of the year, representing a gain of nearly 6.5 per cent. The Russia-Ukraine war, US Fed rate hikes, and inflation have all contributed to rising gold prices. The rise in gold demand has caused the stock market to decrease since the beginning of the year.

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