Gold rate today: After disappointing US job data and the buzz about the US Fed rate cut, the gold price today witnessed bulls’ support during early morning deals. The gold futures contract on the Multi Commodity Exchange (MCX) for August 2024 expiry opened upside at ₹73,237 per 10 gm and touched an intraday high of ₹73,378 per 10 gm. In the international market, the Comex gold price oscillates around $2,400 per troy ounce, whereas the spot gold price is around $2,380 per ounce.
According to commodity market experts, gold rates today are rising as the weak US job data released on Thursday has triggered the US Fed rate cut buzz in the meeting scheduled in September 2024. They said that the US dollar rate has also hit two-month low while the US Treasury yield is also under the selling pressure. These developments are not only helping the gold price rally but also presenting a promising buying opportunity for gold investors, should they choose to take advantage of any dip in the market.
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US Fed rate cut buzz
On why gold price is rising, the highly respected Anuj Gupta, Head of Commodity & Currency at HDFC Securities, shared his insights. He said, “Gold price today is ascending across world as the US job data released on Thursday is disappointing for the market. This has put pressure on the US treasury yields and the US dollar price, which fueled the US Fed rate cut buzz.”
Saish Sandeep Sawant Dessai, Base Metal Analyst at Angel One, said, “Gold prices surged to a two-week high on Thursday following weaker-than-expected US jobs data, which fueled speculation about a potential Federal Reserve interest rate cut later this year. Wednesday’s report revealed that U.S. private payrolls grew less than anticipated in May, with April’s figures also revised downward.”
The Angel One expert highlighted the consensus among a majority of forecasters, who predict the Fed will reduce its key interest rate in September and once more this year, though there’s a significant risk of fewer cuts. This sentiment, based on their extensive research and analysis, contrasts with market expectations, which have fluctuated between one and two cuts.
Gold price outlook
“Gold prices are poised to remain strong amid expectations of potential interest rate cuts by the Federal Reserve following weak US jobs data,” said Angel One expert.
Advising a buy-on-dips strategy to gold investors, Anuj Gupta of HDFC Securities said, “The outlook for gold is highly bullish after the weak US job data release. MCX gold rate today is in the ₹72,000 to ₹73,800 range, and upon breaching the upper hurdle, we may see gold prices rising to the tune of ₹74,500 on MCX. Likewise, in the international market, spot gold price today is around $2,380 per ounce, and on breaching the immediate hurdle placed at $2,390, one can expect the precious metal to scale around $2,420 per ounce level.”
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