Gold rate today touched a new peak of ₹65,298 per 10 gm on the Multi Commodity Exchange (MCX) as the US dollar index touched a five-week low after US Fed testimony in the US Senate. MCX gold rate today opened at ₹65,205 per 10 gm level and went on to touch an intraday high of ₹65,298 per 10 gm mark, which became a new peak for the yellow metal during the early morning session on Thursday. In the international market, spot gold price is oscillating around $2,150 per ounce mark. On Wednesday US Fed chief Jerome Powell confirmed in the US Congress that rate cut will begin this year as inflation pressure on the US economy has eased. This triggered profit booking in the bond and currency market, which pulled down the US dollar index at a 5-week low.
US Fed testimony in focus
On why gold prices are skyrocketing across the world, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “The US Fed chief Jerome Powell has confirmed interest rate cut in 2024 during testimony before the US Senate. The US Fed chief said that on Wednesday that triggered profit booking in the currency and bond market. The US Fed rate cut buzz pulled down the US dollar index to the 5-week low. “
“If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year,” US Fed chief Jerome Powell told the House of Financial Services Committee.
Powell’s comments kicked off two days of planned hearings in the House and Senate, in which he will be grilled about when the Fed will start cutting elevated interest rates, and its proposals for regulating US banks. The hearings were convened to discuss the Fed’s semi-annual Monetary Policy Report, which was published last week.
Weak US economic data and banking jitters helped spark a 5% jump in bullion prices over the past four trading sessions, with the latest gains on Tuesday and Wednesday topping the previous high set in December. However, the speed and scale of the move caught many market watchers off guard, particularly in the absence of any significant change in the outlook for when the Federal Reserve would start cutting rates, which has been a key focus
Gold rate today: Importatnt levels to watch
Anuj Gupta of HDFC Securities said that MCX gold rate today has immediate support placed at the ₹64,800 level whereas it is facing a hurdle at ₹65,800 to ₹66,000 per 10 gm level. In the international market, sport gold price today has support placed at $2,120 per ounce level while it is facing a hurdle at $2,180 per ounce level.
(With inputs from Bloomberg, AFP)
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