Gold rate today (May 9, 2023): Yellow metal hovers near Rs 61,000, silver above 77,000

Gold rate today (May 9, 2023):​ Yellow metal in the domestic market on Tuesday traded in green and hovered near Rs 61,000 level, silver was above Rs 77,000.

Last seen, on MCX, gold futures (June 5) was up by Rs 57 at Rs 60,984 per 10 grams. MCX Gold June futures traded between Rs 60,905  and Rs 60,989 on May 9, 2023. Meanwhile, Silver futures (July 5) was up by Rs 99 or 0.13 per cent at Rs 77,178 per kg. 

In the international market, COMEX gold traded at $2031.3 per ounce.

"The COMEX gold is trading almost in a narrow range in Asian hour as market participants await U.S inflation data later in this week. The persistent concern over a banking crisis and a potential recession supported yellow metal. The dollar index is trading above the 101 level. The COMEX gold is having support near $2,022 and resistance at $2,038," said NS Ramaswamy, Head of Commodities, Ventura Securities.

Spot gold traded flat in the international market and stood at $2,024.9 per ounce.

"The five-year US yields were up 1.81%, which helped the US Dollar Index recover some of the lost ground. Today's US data docket includes NFIB small business optimism Index, which will shed a light on health of small businesses. The Index has been below 49-year average for fifteen straight months," said Praveen Singh – Associate VP, Fundamental currencies and Commodities, Sharekhan by BNP Paribas

he added SLOOS survey outcome is positive for gold, though risk-off sentiments may support the US Dollar to some extent. Overall, dip buying is expected to continue as traders look forward to tomorrow's US CPI inflation data.

What analyst suggests?

"While markets expect the bank to likely pause its rate hike cycle, they have also begun scaling back bets on potential rate cuts this year as Inflation remains sticky while yesterday Federal Reserve survey of loan conditions showed on Monday that the recent collapse of several banks had not impacted credit conditions as drastically as feared. Any upside in Gold is likely to be
held back by interest rates remaining higher for longer," said Neha Qureshi, Senior Technical & Derivative Research Analyst, Anand Rathi Commodities & Currencies.

She added market focus is now on U.S. consumer price index inflation data due on Wednesday, which is expected to show that inflation eased slightly in April from the prior month. But it is still expected to remain well above the target leading to hawkish reactions from the central bank fed officials and could continue to keep Gold cautious ahead of data.

Qureshi suggests buying gold June futures on dips at 61,000 keeping a stop loss of Rs 60,800 and a target price of Rs 61,400. For the Silver July contract, she suggests buying on rise at Rs 77,000 keeping a stop loss of Rs 76,000 and a target of Rs 79,000.

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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