Gold rate today: The price of gold has continued to break records this week, driven by the anticipation of a US Federal Reserve rate cut following Jerome Powell’s testimony before the US Congress. The spot gold price reached an all-time high on Friday, briefly surpassing $2,200. On the Multi Commodity Exchange (MCX), the gold rate closed at ₹66,019 per 10 gm, marking a weekly gain of ₹2,419 per 10 gm or nearly 4 percent appreciation. The spot gold price ended at $2,179 per ounce, showing a 4.65 percent increase from the previous Friday’s close of $2,082 per ounce.
Commodity market experts attribute the surge in gold prices to speculation about a US Fed rate cut after Jerome Powell’s testimony. Global economic uncertainties and geopolitical tensions are also contributing to the demand for gold.
Insights into gold price rally
Sugandha Sachdeva, Founder of SS WealthStreet (Formerly WealthWave Insights), mentioned, “The rise in gold prices to historic levels indicates a blend of factors driving demand for the precious metal. Concerns about the global economic landscape, geopolitical uncertainties, and expectations of earlier interest rate cuts are all boosting gold prices.”
Anuj Gupta, from HDFC Securities, highlighted that the US Fed rate cut rumors are impacting the US dollar, causing the US dollar index to fall below the 103 level.
Future outlook for gold prices
Looking ahead, Sugandha Sachdeva stated, “Despite the recent rally, potential risks like a strong US jobs report could slow down the upward momentum. However, lower borrowing costs typically drive gold prices higher, and overall, the outlook for gold remains optimistic.”
Factors influencing gold price movement
Sachdeva added, “The focus will shift to the latest US inflation data to gauge the trajectory of US interest rates, which could sway gold prices. While short-term corrections are possible, the fundamental factors driving gold demand remain stable, supporting a positive outlook for the metal.”
Disclaimer: The opinions expressed are those of individual analysts, experts, and broking firms. Investors are advised to consult certified experts before making investment decisions.
Additional Insights:
– The continuous record-breaking run of gold prices underscores the ongoing uncertainty in the global economic landscape and geopolitical environment. These factors are likely to sustain the demand for gold in the near future.
– Speculation surrounding an early US Federal Reserve rate cut has created volatility in the market, impacting the value of the US dollar and contributing to the surge in gold prices.
– While short-term fluctuations are expected, the overall trend for gold prices remains positive, presenting potential buying opportunities for investors.
– Monitoring key indicators such as US inflation data will be crucial in understanding the direction of interest rates and their impact on gold prices moving forward.
