Gold price today (May 10, 2023): Yellow metal trades under pressure ahead of the US inflation data release

Gold rate today (May 10, 2023):on MCX, gold futures (June 5) was down by Rs 179 or 0.29 per cent at Rs 61,240 per 10 grams. Here's what analysts suggest

In the international market, COMEX gold traded at $2038.4 per ounce, image- PTI

Gold rate today (May 10, 2023): Yellow metal in the domestic market on Wednesday traded lower above Rs 61,000 level, silver was above Rs 77,000 ahead of the US inflation data release.

Last seen, on MCX, gold futures (June 5) was down by Rs 179 or 0.29 per cent at Rs 61,240 per 10 grams. MCX Gold June futures traded between Rs 61,240 and Rs 61,305 on May 10, 2023. Meanwhile, Silver futures (July 5) was down by Rs 190 or 0.25 per cent at Rs 77,266 per kg.

In the international market, COMEX gold traded at $2038.4 per ounce.

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"The COMEX gold is trading in a narrow range but t above $2,000 mark in early trade supported by safe-haven demand due to uncertainty over the U.S. debt limit and slowing economic growth. The market participant await key inflation data from the U.S later in the day. The dollar index is trading below the 101.5 level. The COMEX gold is having support near $2,028 and resistance at $2,048," said NS Ramaswamy, Head of Commodities, Ventura Securities.

Spot gold traded flat in the international market and stood at $2,031.5 per ounce.

"A slight miss in the US CPI inflation data reading may not make a sustainable difference to gold prices, while even a slightly higher reading may weigh on prices of the yellow metal. Dip buying is preferred over chasing the rally trade," said Praveen Singh – Associate VP, Fundamental currencies and Commodities, Sharekhan by BNP Paribas

He added simmering tension between Europe and China is supportive for gold. Traders will be closely watching developments in the US regional banking sector, too. Support is at $2020/$2000/$1977. Resistance is at $2050/$2060.

What analyst suggests?

"Data released on Tuesday showed the US NFIB Small Business Optimism index dropped to 89 in April, the lowest reading since 2013 which supported the precious metals complex. Today, the US will release the Consumer Price Index (CPI) data for April, which is expected to have a significant impact as gold may trade cautiously ahead of the release of same, while volatility could be expected post-release of data," said Neha Qureshi, Senior Technical & Derivative Research Analyst, Anand Rathi Commodities & Currencies

Qureshi suggests buying gold June futures on dips at 61,100 keeping a stop loss of Rs 60,900 and a target price of Rs 61,500. 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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