Although the US dollar continued to attract bullish interest in the currency market, gold prices continued above $2,000 an ounce today in the international market, triggering bottom fishing in Indian markets. The Multi Commodity Exchange (MCX) June 2023 gold futures contract opened higher, hitting an intraday high of ₹60,404 per 10 grams within minutes of the commodity market opening. In the international market, gold prices immediately rebounded after hitting a daily low of $1,995.51 and reached a daily high of $2,006.24.
Commodity market experts say that despite the strength of the US dollar on Monday’s trade, the US dollar continues to remain a. ‘sell on rise’ asset, and the dollar index could soon break its direct support at 100 levels. They said today’s gold rate enjoys immediate support at $1,980 and $1,945 an ounce level in the international market. In contrast, the gold price on MCX in the domestic market has support at ₹59,700 per 10 grams and ₹58,500 per 10 grams, respectively.
They added that if the US dollar falls, we may see the price of gold rise. In the international market, the precious metal is touched by a barrier of $2.050, while in the domestic market, it is touching ₹61,500 and ₹62,500, respectively.
The Effect of The US Dollar Rate
As for why the US dollar rebounded from its yearly low, Anuj Gupta, Vice President of Research at IIFL Securities, said: “The US dollar rebounded from its yearly lows after one of the Fed officials made hawkish comments on the rate hike. However, the US dollar remains a bullish asset and could break the current support at 100 at any time. Once this support breaks, we can expect gold prices to shine again and rally to the $21,050 level soon”.