Gold rate today: Following the renewed fear of the US recession and rising tension in the Middle East, the gold price rebounded strongly from the four-month low last week. The gold futures contract on the Multi Commodity Exchange for October 2024 expiry finished at ₹69,792 per 10 gm mark. COMEX gold price finished at $2,486 per troy ounce on Friday after testing the $2,500 mark.
According to commodity market experts, higher jobless claims in the US have renewed the fear of recession. Meanwhile, the Middle East tension already provides fodder for the gold price rally. They said that buzz for the US Fed rate cut after the ‘cooling inflation’ jibe by the US Fed Chief Jerome Powell, these recent developments fueled the gold price rally throughout the week. After a massive sell-off in the US stock market on Friday, this rally in the yellow metal is expected to extend for a few more sessions.
What’s fueling gold prices today?
Highlighting the reasons fueling gold rates today, Anuj Gupta, Head of Commodity & Currency at HDFC Securities, said, “After the higher jobless claims, fear of the US recession has been renewed. Bloodbath in the US stock market on Friday is expected to help gold prices emerge as a haven asset for investors because money from assets like bonds, currency, equities, etc., are expected to shift towards safe-haven like gold and silver.”
On other factors that helped gold prices rebound from their four-month low, Anuj Gupta of HDFC Securities said, “Buzz for the US Fed rate cut after Jerome Powell’s cooling inflation jibe in the US Fed meeting and escalating tension in the Middle East due to an Israel-Hamas war-like situation were some other reasons that kept the gold prices on an uptrend last week.”
Echoing Anuj Gupta’s views, Jateen Trivedi, VP—Commodity and Currency Research at LKP Securities, said, “Gold price rise is driven by renewed fears of a US recession following higher jobless claims and escalating tensions in the Middle East, fueling safe-haven buying. Investors are now focused on the upcoming Nonfarm Payrolls and unemployment data, which will provide clarity on the likelihood of a September rate cut by the Federal Reserve. The broad trend for gold remains positive.”
“COMEX Gold continuous contract jump 1.1 per cent to $2,507.1 per troy ounce as chances for a US interest rate cut to grow and tensions in the Middle East escalate. The price was boosted by comments by Fed Chair Jerome Powell on Wednesday, opening the door to a rate cut in September. According to Bloomberg data, inflows into gold-backed exchange-traded funds in July were the biggest since March 2022, implying that the shift to monetary loosening may be reviving Western investors’ interest in the precious metal,” Kotak Securities report said.
Gold price today: Important levels to watch
“MCX gold rate today is in ₹69,000 to ₹71,000 per 10 gm range, and the bias for the yellow metal is positive. On breaching above the ₹71,000 mark, we can expect the yellow metal prices to touch ₹72,000 and ₹73,500 per 10 gm soon. In the international market, spot gold is in the $2,420 to $2,460 range. On breaching the $2,460 mark, we can expect spot gold price to touch the $2,480 and $2,510 per ounce mark,” said Anuj Gupta of HDFC Securities.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
### Additional Insight
The current geopolitical tensions and economic uncertainties, particularly in the US, are contributing to the increased demand for gold as a safe-haven asset. As investors seek to hedge against potential risks and market volatility, gold continues to attract interest as a reliable store of value.
The dovish stance of central banks, including the US Federal Reserve, towards potential interest rate cuts further supports the bullish sentiment for gold prices. The prospect of looser monetary policy typically boosts gold prices as it reduces the opportunity cost of holding non-yielding assets like gold.
Looking ahead, key economic data releases such as the Nonfarm Payrolls and unemployment figures will likely provide further direction for gold prices, with any indication of weakening economic conditions potentially prompting additional buying interest in the precious metal.
