Gold rate today, May 5, 2023: Yellow metal trades in green above Rs 61,000, silver above Rs 78,000 after US Fed's dovish commentary on rate hike

Gold rate today (May 5, 2023): On MCX, gold futures (June 5) was flat at Rs 61,505 per 10 grams. Here's what analysts suggest

Gold rate today (May 5, 2023): In the international market, COMEX gold traded at $2055.9 per ounce, Pic- PTI

Gold rate today (May 5, 2023): Yellow metal in the domestic market on Friday traded in green above the Rs 61,000 level after US Fed's dovish commentary had charged the bulls, while bears continue to stay on the sidelines.

Last seen, on MCX, gold futures (June 5) was flat at Rs 61,505 per 10 grams. MCX Gold June futures traded between the range of Rs 61,502 and Rs 61,629 on May 5, 2023. Meanwhile, Silver futures (July 5) was up by Rs 144 or 0.18 per cent at Rs 78,182 per kg.

In the international market, COMEX gold traded at $2055.9 per ounce.

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"The COMEX gold is trading n flat in Asian hour ahead of U.S Non-Farm payroll data later in the day. The price traded nearly $2,055 level after hitting a fresh high of $2,085 due to profit booking from a higher level. The dollar index is trading above the 101 level. The COMEX gold is having support near $2,038 and resistance at $2,072," said NS Ramaswamy, Head of Commodities, Ventura Securities.

Spot gold traded flat in the international market and stood at $2,047.6 per ounce.

"As expected, the European Central Bank hiked the benchmark rate by 25 bps. Although the Central Bank vowed to hike rates further to rein in inflation, it is expected that it won't return to 50 bps hikes. The Euro-Dollar pair retreated from the day's high after the decision," said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.

He added gold is expected to consolidate ahead of the crucial US nonfarm payroll report for April due today. The pace of job creation is expected to slow down; however, going by strong ADP data, the report may surprise on some counts. The yellow metal has strong support at $2020 followed by $2000, while stiff resistance is seen $2080. Dips are expected to find strong buying support.

What analyst suggests?

"Overall Gold is expected to end the week on a bullish note while volatility is here to persist in the evening session post-release of payrolls report," Neha Qureshi, Senior Technical & Derivative Research Analyst, Anand Rathi Commodities & Currencies.

Qureshi suggests buying gold June futures on dip at 61,200 keeping a stop loss of Rs 61,000 and a target price of Rs 61,600. For the Silver July contract, she suggests buying on dip at Rs 77,500, with a stop loss of Rs 76,500 and a target of Rs 79,500.

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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