Gold rate today: Despite commitments in the US Fed meeting to maintain a high-interest rate regime, gold price finished more than 0.75 percent higher in the week gone by. Gold future contract on the Multi Commodity Exchange (MCX) for February 2024 expiry ended at ₹63,200 per 10 gm level, clocking ₹1,250 per 10 gm weekly gain against the previous Friday close of ₹61,950 per 10 gm. In the international market, gold price finished at the $2,039 per ounce level, logging a weekly gain of over $21 per ounce.
According to commodity market experts, Middle East tension helped the gold price to exhibit resilience despite the diminished hopes of an interest rate cut in March 2024. They said that the Red Sea crisis boosted the demand for gold as a safe haven but strong US job data strengthened the US dollar, which put breaks on the gold rush. They said that the MCX gold rate is facing resistance at the ₹63,200 level whereas it has crucial support placed at the 61,500 level.
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Triggers for gold price rally
On why gold price surged despite diminished hopes of an interest rate cut in March 2024, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “The precious yellow metal displayed resilience despite US Fed meeting diminished hopes of an interest rate cut in March 2024. A major reason for this resilience can be attributed to the Red Sea crisis.”
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“Geopolitical concerns in the Middle East played a significant role in boosting safe-haven demand for gold during the week. However, towards the end of the week, gold relinquished some of its gains due to a strengthening US dollar and rising treasury yields. The impetus for this shift was the release of a robust January jobs report, revealing an addition of 353,000 jobs, surpassing both December 2023’s figures and the market’s expectations of 187,000 jobs. Additionally, strong wage growth data hinted at persistent price pressures, clouding the outlook for potential rate cuts,” said Sugandha Sachdeva, Founder of WealthWave Insights.
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Gold price outlook
On the outlook for gold price in the near term, Sugandha Sachdeva said, “Deciphering the price action, gold appears to have formed a base around ₹61,500 per 10 gm or $2,000 per ounce. Nonetheless, they are seen facing resistance at the ₹63,200 per 10 gm level. Sustained move past ₹63,200 per 10 gm level may pave the way for continued upward momentum, with the precious metal eyeing ₹63,800 per 10 gm or $2,080 per ounce level on the higher side.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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