Gold Price Today, 2 Feb: Gold, silver shine on dovish Fed interest rate hike, Budget 2023 as dollar softens

© Provided by The Financial Express Spot gold was up 0.2% at $1,953.76 per ounce after hitting its highest since April 2022 earlier in the session. U.S. gold futures rose 1.3% to $1,967.50.

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading higher on Thursday as a result of positive global cues, while the silver rate is up 2.01% extending Wednesday’s gains following the Union Budget 2023. On Multi Commodity Exchange, gold February futures were trading at Rs 58,497 per 10 grams, up Rs 612 or 1.06%. Silver March futures were trading higher by Rs 1401 at Rs 71,242 per kg on MCX. Globally, the yellow metal prices rose to touch a nine-month high as the US Federal Reserve announced a hike of 25 bps in the interest rate and Chair Jerome Powell’s comments were seen as dovish, according to Reuters. Spot gold was up 0.2% at $1,953.76 per ounce after hitting its highest since April 2022 earlier in the session. U.S. gold futures rose 1.3% to $1,967.50.

Bulls may target psychological level of $2000/oz: Ravindra V. Rao, Kotak Securities

After a range bound move since the start of the week, gold scaled to new 9 month high as US Dollar and treasury yields slipped following the conclusion of the FOMC meeting. As expected, the Fed hiked the rates by 25 bps points. Although there was no indication of a pause in the rate hike stance, Fed’s statement that the policy had helped slow the inflation has been taken as dovish by the markets. This has pressurized the dollar that slipped to a new 9 month low. The focus will now shift to US Nonfarm payrolls (NFP) print due to be released on Friday. On the price front, the bearish engulf formation has negated as the price moved above the pattern high before confirmation. Now the price has to sustain above the $1967/oz resistance and if that happens the bulls might target the psychological $2000/oz.

Gold likely to trade with a positive bias: ICICIDirect Report

Bullion prices remained firm in the domestic markets after the Government of India decided to increase the duty on articles made therefrom to enhance the duty differential. Silver futures gained the most as the basic custom duty on silver was increased to 10% from 7.5% and AIDC on the imports to 5% from 2.5%. Furthermore, the decline in US ADP Non Farm employment numbers to 106,000 against forecast of 176,000 has supported the bullish outlook in metals. Additionally, contraction in the manufacturing sector has supported the bull case ahead of key FOMC meetings. The bullion prices are likely to trade with a positive bias amid weakness in dollar and decline in US treasury yields. The US Federal Reserve increased rates by 25 bps as expected and Fed Chairman Powell noted progress on disinflation, which he said is in early stages. MCX gold is likely to rise towards the key target resistance zone of 58200 and silver is expected to move towards 70,600-71,000.