Gold and silver rate today (May 2, 2023): Yellow metal trades flat below Rs 60,000; should you buy or sell?

Gold and silver rate today (May 2, 2023):​ Yellow metal in the domestic market on Tuesday traded flat below the Rs 60,000 level.

Last seen, on MCX, gold futures (June 5) was flat at Rs 59,747 per 10 grams. MCX Gold June futures traded between the range of Rs 59,734 and Rs 59,755 on May 2, 2023. Meanwhile, Silver futures (July 5) was down but at Rs 293 or 0.39  per cent at Rs 75,166 per kg. 

In the international market, COMEX gold traded at $1983.4 per ounce.

"The COMEX gold is trading below the $2,000 mark in Asia hour ahead of two days Federal Reserve meeting. The market participants are expecting to hike interest rates by 25 basis points at the conclusion of a two-day meeting on Wednesday. The dollar index is trading above the 101.5 level. The COMEX gold is having support near $1,982 and resistance at $2,002," said NS Ramaswamy, Head of Commodities, Ventura Securities.

Spot gold traded flat in the international market and stood at $1,982 per ounce which was flat by 0.03 per cent.

"Spot gold is flattish around $1982 as the metal consolidates ahead of the US FOMC monetary policy decision and Friday's nonfarm payroll report, said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas 

He added today's key data include manufacturing PMIs out of Europe and UK followed by US factory orders and JOLTs job openings. Gold is still stuck in the $1969-$2020 range. Dip buying is favoured. 

What analyst suggests?

"Gold traded with limited upside yesterday as rising treasury yields weighed on the sentiments. Moving ahead with markets looking ahead to 25 bps rate hike by US Fed in its upcoming interest rate decision tomorrow, comments from Fed chair regarding future interest rate direction would be closely scrutinized as markets may remain volatile ahead of same. The overall steady dollar index is expected to keep a sharp upside limited in day trade today, Neha Qureshi, Senior Technical & Derivative Research Analyst, Anand Rathi Commodities & Currencies.

Qureshi suggests selling gold June futures on rise at 59,850, keeping a stop loss of Rs 60,050 and a target price of Rs 59,450. For the Silver May contract, she suggests selling on rise at Rs 75,300, with a stop loss of Rs 76,300 and a target of Rs 73,300.

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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