Gold rate today: The gold price continued its winning streak after the US Fed meeting on Wednesday, with the gold futures contract on the Multi Commodity Exchange (MCX) for the October 2024 expiry opening with an upside gap at ₹69,994 per 10 gm. It touched an intraday high of ₹70,065 per 10 gm shortly after the commodity market’s opening bell. This surge in gold prices can be attributed to various factors.
Commodity market experts believe that US Fed Chief Jerome Powell’s remarks on cooling inflation have led to a weakening of the US dollar rate and US Treasury yields. This, coupled with the escalating Israel-Palestine conflict, has driven up demand for gold and other bullion metals. It is predicted that the MCX gold rate could reach ₹71,000 per 10 gm in the near term, while the COMEX gold price may touch $2,460 and $2,480 per troy ounce. The current uptrend in gold prices is also influenced by other global factors.
US Fed rate cut buzz
Anuj Gupta, Head of Commodity & Currency at HDFC Securities, explains that despite the US Fed keeping interest rates steady, Jerome Powell’s remarks suggesting a possible rate cut in the September 2024 meeting have impacted the US dollar rates and Treasury yields. This has caused the US dollar index to drop below the 104 mark, with bond yields also experiencing significant declines. These developments contribute to the current surge in gold prices.
Additional insight: The geopolitical tensions in the Middle East, such as the Israel-Palestine conflict, often have a considerable impact on global gold prices. Such conflicts tend to increase the demand for safe-haven assets like gold, further driving up its price.
Weakness in US dollar rates
Praveen Singh, Associate VP at Sharekhan by BNP Paribas, notes that the US dollar rate is weakening due to various factors such as the Bank of Japan hiking rates and mixed economic data from the US. This weakness in the dollar makes gold a more attractive investment option, leading to an increase in its price.
Gold rate today: Important levels to watch
Anuj Gupta of HDFC Securities advises investors to consider a buy-on-dips strategy given the positive bias for the gold price. He predicts that MCX gold rates could reach ₹71,000 in the near term, with COMEX gold prices potentially touching $2,460 and $2,480 per troy ounce soon.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. It is advisable for investors to consult certified experts before making any investment decisions.
