Gold Price Today, 5 June- Gold sinks on stronger dollar; resistance seen at Rs 60,150, support at Rs 59,380

Gold Price Today, 5 June: Gold sinks on stronger dollar; resistance seen at Rs 60,150, support at Rs 59,380

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading lower on Thursday, while the silver rate is down 0.31%. On Multi Commodity Exchange, gold August futures were trading at Rs 59,450 per 10 grams, down Rs 158 or 0.27%. Silver July futures were trading lower by Rs 222 at Rs 71,798 per kg on MCX. 

Globally, the yellow metal prices edged lower in range bound trading on Monday as the dollar firmed after a strong U.S. payrolls report, overshadowing support from prospects that the Federal Reserve would pause its rate hikes this month, according to Reuters. Spot gold was down 0.2% at $1,944.69 per ounce as of 0256 GMT, trading in a $6 range. Prices were hovering near their lowest levels since May 30. U.S. gold futures fell 0.4% to $1,961.30.

Gold price falls on strengthening dollar

“Gold price edged lower on the back of positive economic data points, higher US Dollar and Yields, offsetting support from the prospects that the Federal Reserve would pause its rate hikes this month. Dollar index was seen closing above the 104 mark in the previous session; while US 10Y yields are hovering above 3.7%, weighing on safe haven assets. The US Jobs market continues to remain tight as the JOLTS, ADP private payroll and the non-farm, all were reported better than expectations. U.S. nonfarm payrolls rose by 339,000 jobs last month, much higher than an expected increase of 190,000. However, the unemployment rate surged to a seven month high of 3.7% against expectations of 3.5%. 

“On other hand, comments from a few Fed officials last week gave the market a signal for a pause in the rate hike cycle. According to CME Fed- watch tool, the probability for a pause is around 75% and 25% for a 25 bps rate hike in the June Fed meeting. This week focus will be on service PMI from major economies and RBI policy meeting,” said Manav Modi, MOFSL.