Gold Price Today: The Mumbai-based multi-commodity exchange or MCX gold rose further up to hit ₹78,956 per 10 grams in the early morning session, the highest this year.
Gold Price Today: MCX Gold Rate Climbs to YTD High Due to Effect of US Fed Rate Cut
The gold price in MCX has reclaimed its highest level for this year at ₹78,956 per 10 gm in the early morning session today. This rise was due to expectations of a possible US Federal Reserve (Fed) rate cut in view of a low US core inflation rate. MCX’s gold futures for February 2025 expiry was priced at ₹78,700 for 10 gm when the market opened and rose to ₹78,956 within the first fifteen minutes of trading.
Gold prices rising pushed by expectations for US Fed rate cut
The international gold price is also showing some fluctuation with the spot gold price of $2,693/oz and the COMEX gold price $2,723/t oz. Earnings from markets suggests that current price rise in gold is related to soft US core inflation numbers, which has led to expectations of an announcement of US Fed rate cut at the meeting this month. Even as the fighting line between Israel and Hamas is on a cease between the two parties, the market continues to stay pinned on the possible reduction of the interest rate by the US Fed.
NEW DELHI: The reduction of inflation in US has once again revived the sentiments of less tight monetary policy of US Federal Reserve revealed Jigar Trivedi, Senior Research Analyst at Reliance Securities. , headline consumer prices was not a surprise Inflation rate; the core inflation slowed than was expected. This has lifted demand for bullion because if disinflation happens, then the Fed might be pressured to cut interest rates which would depress the value of holding assets that do not yield income such as gold ,” He said.
Points to Monitor for Gold Prices
In the future, the head of Commodity & Currency of HDFC Securities Anuj Gupta anticipates that there’s going to be little upward movement or stagnation in gold prices. He expressed his view that gold prices may remain contained in the ₹78,000- ₹79,000 per 10 gm range before the inauguration of the 47th US president in January, 2025. The market is still expecting decision on its part from the Trump administration especially following the Israel-Hamas ceasefire.
Gupta’s advice was to have a stop loss at ₹78,400 if one is more invested on positions. Before the inauguration of the stock exchange, gold may touch ₹79,500, if it gains an extent more than ₹79,000. On the flip side, the trader advised his audience to go long in gold at ₹78,200 with a stop loss at ₹77,850. expected price of spot gold in international market is $ 2660 to $ 2700 per ounce. Silver could touch $52 an ounce if it reaches $53, and gold may go up to $2,730 if it breaks $2,700 on a closing basis.
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