Insight into the Current Gold Rate: Due to the anticipated rate cut by the US Federal Reserve during the upcoming Fed meeting scheduled from January 30th to 31st, 2024, there has been a noticeable surge in buying interest early in the morning. In the commodity market, the MCX gold rate opened higher at ₹62,080 per 10 gm and reached an intraday high of ₹62,295 per 10 gm shortly after the market’s opening. In the international market, spot gold price remains around $2,030 per ounce.
Commodity market experts believe that the current gold rate is on an upward trend on the MCX, mainly due to the expectation of a rate cut by the US Federal Reserve. However, the US central bank’s commentary holds significant importance, as it may decide to maintain steady interest rates. The possibility of a rate cut announcement is influenced by the better-than-expected US economic data.
Insights into the US Fed Meeting:
Commenting on the rise in gold prices ahead of the US Fed meeting, Anuj Gupta, Head of Commodity & Currency at HDFC Securities, stated that gold prices are experiencing an increase in both the domestic and international markets. This rise is directly linked to the strong speculation regarding the US central bank’s intention to announce a rate cut schedule, potentially commencing from March 2024 or May 2024, following the better-than-expected US economic data in recent weeks.
Sugandha Sachdeva, Founder of WealthWave Insights, emphasized that although the US Fed is expected to maintain steady interest rates, the anticipation of a rate cut in the May meeting has gained momentum, deviating from earlier projections of a March rate cut. Additionally, the industry is closely monitoring Interim Budget 2024 developments, particularly regarding potential cuts in gold import duties, which could have a significant impact on domestic gold prices and market dynamics.
Crucial Levels to Monitor:
Sugandha Sachdeva underlined the key support at ₹61,500 per 10 gm for the current gold rate, while resistance is observed at ₹62,700 per 10 gm. Deveya Gaglani, Research Analyst for Commodities at Axis Securities, predicts that gold prices will trade within a specified range, with an expected upper limit of 62,600. In the international market, the spot gold price has a crucial support level at $2,000 per ounce, with potential resistance at $2,050 per ounce. A conclusive breach of these levels could lead to further price fluctuations.
Disclaimer: The views and recommendations mentioned are those of individual analysts, experts, and broking companies, and not of Mint. It is advisable for investors to consult certified experts before making investment decisions.
Additional Insight: Given the upcoming US Fed meeting and the potential impact of monetary policy decisions on gold prices, it is essential for investors and traders to remain informed and cautious. The dynamics of the gold market are subject to various domestic and international factors, and a comprehensive understanding of these elements can aid in making informed investment decisions. Moreover, keeping an eye on the latest developments, including budget policies and global economic indicators, can help anticipate price movements and identify trading opportunities.
Published: 30 Jan 2024, 10:49 AM IST
