Gold price sustains above $2000 despite retreat in US dollar. Should you buy?

Gold rate today has immediate support placed at $1,980 levels in international market and in domestic market its immediate support is placed at ₹59,700 levels, say experts

Gold rate today: Despite US dollar continued to attract buying interest of currency market bulls, gold price today sustained above $2,000 per ounce levels in international market that triggered bottom fishing in Indian markets as well. Gold future contract on Multi Commodity Exchange (MCX) for June 2023 opened higher and went on to high intraday high of ₹60,404 per 10 gm within few minutes of commodity market opening. In international market, gold price bounced back immediately after hitting intraday low of $1,995.51 levels and climbed to intraday high of $2,006.24 levels.

According to commodity market experts, despite strength in US dollar on Monday deals, the American currency continues to remain a 'sell on rise' asset and Dollar Index may soon breach its immediate support placed at 100 levels. They said that gold rate today is having immediate support placed at$1,980 and $1,945 per ounce levels in international market whereas in domestic market gold price on MCX has support placed at ₹59,700 per 10 gm and ₹58,500 per 10 gm levels respectively. They went on to add that once there is ease in US dollar rates we can witness sharp upside in yellow metal price. In international market, the precious bullion is facing hurdle at $2,050 levels whereas in domestic market it is facing hurdle at ₹61,500 and ₹62,500 levels respectively.

US dollar rate holds key

On why US dollar bounced back from its one year lows, Anuj Gupta, Vice President — Research at IIFL Securities said, "US dollar witnessed retreat from its one year low after one of the US Fed official's hawkish commentary on interest rate hike. However, US dollar is still a sell on rise asset and it may breach its current support placed at 100 levels any time. Once, this support is breached, we can expect gold price to glitter again and go up to $21,050 levels in near term."

Gold rate today: Major levels to watch

Expecting volatile movement in gold prices in near term, market expert Sugandha Sachdeva said, "While there are some signs of mild exhaustion in gold’s on-going rally and any further retreat in the dollar index would be negative for gold prices, they look likely to find cushion at ₹59,700 per 10 gm and then ₹58,500 per 10 gm mark, which correspond to support levels of $1,980 and then $1,945 per ounce in the international markets."

Sugandha Sachdeva maintained that if the gold price sustains above $2,000 per ounce levels in international market then in that case, gold price set up at the domestic markets indicates that a break above ₹61,500 per 10 gm would bode well for the precious metal and can take it higher towards ₹62,500 per 10 gm mark in the coming days.

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