Gold rate today, 24th February 2024: Following two consecutive weeks of losses, gold prices saw a modest gain of 0.75 percent in the past week. Gold futures contract on the Multi Commodity Exchange (MCX) for April 2024 expiry closed at ₹62,325 per 10 gm on Friday. The spot gold price in the international market ended at $2,035 per ounce, marking a 2.15 percent increase from its low of ₹1,992 per ounce reached earlier in February.
Commodity market experts suggest that the recent uptick in gold prices is attributed to the weakening US dollar and the crisis in the Middle East. The US Federal Reserve’s recent minutes did not indicate any immediate interest rate cuts, emphasizing the challenges of achieving a 2 percent inflation rate. As a result, gold prices are expected to remain stable, with geopolitical tensions and the US dollar’s strength influencing the market.
Additional Insight: The current geopolitical landscape, particularly the Middle East crisis, has heightened demand for gold as a safe-haven asset. In times of uncertainty and conflict, investors tend to turn to gold as a stable investment option, supporting its value in the market.
What fueled the gold rush?
Sugandha Sachdeva, Founder of WealthWave Insights, explained that the recent rebound in gold prices can be attributed to a period of consolidation after consecutive declines. The softening of the dollar and ongoing geopolitical tensions in the Middle East have contributed to gold’s attractiveness as a safe haven asset.
Triggers for the gold price movement
Anuj Gupta, Head of Commodity & Currency at HDFC Securities, highlighted that the US Fed’s stance on rate cuts has influenced the gold market. With resistance levels around $2,045 to $2,050 per ounce, the trajectory of gold prices will be closely monitored.
“As gold reacts to various market dynamics, including geopolitical uncertainties and central bank policies, its resilience as a sought-after asset class remains evident,” concluded Sugandha Sachdeva.
Disclaimer: The views and recommendations presented are those of individual analysts and experts, and we recommend consulting certified experts before making any investment decisions.
Published: 24 Feb 2024, 07:24 AM IST
