Gold rate today, May 4, 2023: Yellow metals trades in green above Rs 61,000 after US Fed signals pause in rate hike

Gold rate today (May 4, 2023):​ Yellow metal in the domestic market on Thursday traded in green above the Rs 61,000 level after the US Fed signaled a pause in a rate hike.

Last seen, on MCX, gold futures (June 5) was up by 0.59 per cent or Rs 360 at Rs 61,325 per 10 grams. MCX Gold June futures traded between the range of Rs 61,200 and Rs 60,335 on May 4, 2023. Meanwhile, Silver futures (July 5) was up by Rs 818 or 1.07  per cent at Rs 77,400 per kg. 

In the international market, COMEX gold traded at $2050.4 per ounce.

"The COMEX gold is trading higher in early trade and touched a record high of $2,080 after the U.S. Federal Reserve hiked interest rate to 5.25 as expected but signaled to pause further hike due to worsening economic conditions. Meanwhile, dollar index is trading below 101 mark supporting yellow metal. The COMEX gold is having support near $2038 and resistance at $2,065," said NS Ramaswamy, Head of Commodities, Ventura Securities.

Spot gold traded flat in the international market and stood at $2,042.7 per ounce which was flat by 0.15 per cent.

What analyst suggests?

"As expected, Gold briefly tested new highs at 2080 before paring gains as signals of pause in rate hike by US Fed led bulls to gain momentum which could also boil down to a positive opening in MCX Gold today. Although the market could look ahead to its next cue of US Payrolls due tomorrow, bulls could continue to have an edge over bears this week which may lead gold to
finish the week higher," Neha Qureshi, Senior Technical & Derivative Research Analyst, Anand Rathi Commodities & Currencies.

Qureshi suggests buying gold June futures on dip 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 dip at Rs 76,500, with a stop loss of Rs 75,500 and a target of Rs 78,500.

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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