Gold rate today, May 8, 2023: Yellow metal trades in green hovers above Rs 60,000, silver above Rs 77,000

Gold rate today (May 8, 2023):​ Yellow metal in the domestic market on Monday traded in green above the Rs 60,000 level.

Last seen, on MCX, gold futures (June 5) was up by Rs 233 or 0.38 per cent at Rs 60,861 per 10 grams. MCX Gold June futures traded between the range of Rs 60,776  and Rs 60,8765 on May 8, 2023. Meanwhile, Silver futures (July 5) was up by Rs 262 or 0.34 per cent at Rs 77,309 per kg. 

In the international market, COMEX gold traded at $2055.9 per ounce.

"The COMEX gold is trading on a positive note in Asian hour on short covering from the lower level after batter-than -expected Non-farm payroll data from the U.S. raised concern over a hawkish Federal Reserve. The dollar index is trading below the 101 level . The COMEX gold is having support near $2,018 and resistance at $2,038," said NS Ramaswamy, Head of Commodities, Ventura Securities.

Spot gold traded flat in the international market and stood at $2,024 per ounce.

"The US Federal Reserve will release its quarterly Senior Loan Officer Opinion Survey (SLOOS) today, which will bring more clarity regarding banks tightening credit standards for commercial and industrial purposes. Tightening credit conditions may support gold prices," Praveen Singh – Associate VP, Fundamental currencies and Commodities, Sharekhan by BNP Paribas

He added gold is expected to consolidate its recent gains; dip buyers are likely to support the metal. Overall, gold is expected to trade with a positive bias on banking concerns in near-term. Support is at $2000/$1977. Resistance is at $2050/$2060. 

What analyst suggests?

"Precious metals declined after the US Non-Farm data release, the pressure may persist for a while. I would recommend selling on rise on both metals," said Amit Sajeja Vice President - Research- Commodities & Currencies, Motilal Oswal.

Sajeja suggests selling gold June futures on rise at 60,850 keeping a stop loss of Rs 61,100 and a target price of Rs 60,350. For the Silver July contract, she suggests sell on rise at a stop loss of Rs 78,100 and a target of Rs 79,500.

On the flip side Neha Qureshi, Senior Technical & Derivative Research Analyst, Anand Rathi Commodities & Currencies recommends buying on dips. 

Qureshi suggests buying gold June futures on dips at 60,700 keeping a stop loss of Rs 60,500 and a target price of Rs 61,100. For the Silver July contract, she suggests buying on rise at Rs 76,500 keeping a stop loss of Rs 75,500 and a target of Rs 78,500.

"With gold still remaining well above $2000 an ounce levels in COMEX, focus for gold for the week is now on the Fed's loan officer survey due later tonight which might show whether and how hard banks are tightening up on credit after three U.S.lenders failed over recent weeks - which could weigh on the dollar and support gold," said Neha Qureshi, Senior Technical & Derivative Research Analyst, Anand Rathi Commodities & Currencies.

She added traders will also be watching headlines from Capitol Hill as lawmakers attempt to negotiate an impasse over the looming U.S. debt ceiling, with the Treasury Secretary warning the government might be unable to pay debts by June 1. U.S. consumer price index inflation data, due on Wednesday is also under focus amid elevated inflation to weigh on prices. Meanwhile Fed fund futures prices show that markets are pricing in a 90 per cent chance that the bank will hold interest rates steady in June.

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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