Gold Price Today 8 September 2022: As expected, the European Central Bank (ECB) today hiked the interest rates by 75 bps, its largest ever hike. This is expected to help the cause of bullion furher. The DXY was trading at 109.53 and was down by 0.27 per cent around 6:30 pm. Euro is expected to get stronger against the USD, and could result in further correction, commodity and currency expert Anuj Gupta said. 

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MCX October Gold futures were trading nearly flat around 6 pm on Thursday. They were up by Rs 27 from the Wednesday closing price and trading at Rs 50533 per 10 gram. Meanwhile, December Silver futures were trading at Rs 54305 per kg and were up by Rs 278 or 0.51 per cent. Softening in US Dollar Index (DXY) and Bond Yields negated some weakness in the yellow metal.

His advice to investors is to buy Gold and Silver Futures. 

Buy October Gold futures at Rs 50500, with a stop loss of Rs 50250 and target price of Rs 51000. As for MCX Silver futures, buying is recommended at Rs 54000 with a stop loss of Rs 53400 and price target of Rs 55000.   

Another factor that is lending strength to the Gold prices in the domestic markets is the demand for physical gold, Gupta said. The prices are expected to remain firm as we head to the festive season. 

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities.

"Gold prices got some much-needed respite as the dollar index lost some of its steam. The USD came off its 20-year highs as the markets prepare to take in ECB’s rate hike decision," Pritam Patnaik, Commodities Head, HNI & NRI Acquisitions, Axis Securities said.

"Expectations of higher rates from the ECB have bolstered the Euro against the USD, leading to a small relief rally in gold. The sustainability of the same is limited, as the impending Fed rate decision is bound to come back to focus. The market expects gold to trade in a range between USD 1730 to USD 1680. A sustained move above or below this range could signal a more definitive trend. Sell on the rise is the recommended strategy," he said.

A Motilal Oswal report said that the yellow metal futures are expected to move with a positive bias. The support is seen at Rs 50320-50100 while the resistance is seen at Rs 50650-50820. In the international market, the support is seen at USD 1711-1700 while resistance at USD 1732-1742.    

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)