Gold rate today, 5th March 2024: Ahead of the US Fed Chief’s testimony before the US Congress this week, gold price on the Multi Commodity Exchange (MCX) touched a new lifetime high of ₹64,575 per 10 gm on Monday. However, the MCX gold rate today witnessed some selling pressure during morning deals. Gold futures contract on the MCX for April 2024 expiry opened lower at ₹64,331 per 10 gm level, which is its intraday low as well. Today’s gold rate witnessed some buying interest at the lower levels and went on to touch an intraday high of ₹64,388 per 10 gm. In the international market, spot gold price is oscillating around $2,113 per ounce level.
According to commodity market experts, gold prices witnessed upside movement ahead of the US Fed Chief Jerome Powell’s testimony before the US Senate on Wednesday this week. However, gold prices found support as the US job data, non-farm payroll data, etc., are expected on Thursday and Friday this week. They said the market is expecting disappointing US data coming on Thursday and Friday. That’s why gold prices are ascending despite some US Fed officials hinting that Jerome Powell may talk hawkishly during testimony before the US Senate this week.
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Why are gold prices skyrocketing?
On triggers that fueled MCX gold rate at a record high on Monday, Anuj Gupta, Head — Commodity & Currency at HDFC Securities, said, “Despite some US Fed officials dropping a hint that Jerome Powell may talk hawkish during testimony before the US Congress, MCX gold rate scaled to a new peak of ₹64,575 per 10 gm on Monday. This could happen on the buzz that US job data, non-pharm payroll data, etc., expected on Thursday and Friday this week may be disappointing. Thus, we witnessed some profit-booking in the currency and bond markets, which supported the gold prices.”
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On other factors that enabled gold prices to scale new highs, Ravindra Rao, Head Commodity Research, Kotak Securities, said, “COMEX Gold prices saw the highest daily close on Monday and are trading near the record high of $2,152.3 per troy ounce notched in December 2023, as weak US economic data last week improved the conviction that the Federal Reserve might start cutting rates in next the coming months. Recently, Fed Governor Waller said he favoured a shift in the Fed’s holdings toward a larger share of short-term treasuries. Markets now focus on US ISM Services, Jobs data, and Powell’s testimony for more cues on Fed policy path.”
Gold rate today: Important levels to watch
On important levels regarding gold prices, Anuj Gupta of HDFC Securities said, “MCX gold rate today has immediate support placed at ₹64,000, whereas it has crucial support placed at ₹63,500 per 10 gm level. On the upper side, the MCX gold rate today is facing an immediate hurdle at the ₹64,800 level. On breaching this level, gold price on MCX may go up to ₹65,300 per 10 gm level. In the international market, spot gold price has breached the $2,100 hurdle and is now in the $2,100 to $2,030 range. On breaching the upper hurdle, spot gold price may go up to $2,150 per ounce level while on breaching its support placed at $2,100 level, spot gold price may go down towards $2,080 per ounce level.”
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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