Gold rate today: On account of three US Fed rate cut buzz in 2024, gold price extended its Wednesday evening rally on Thursday morning deals. Gold futures contract on the Multi Commodity Exchange (MCX) for the April 2024 expiry opened higher at ₹66,100 per 10 gm and went on touch an intraday high of ₹66,943 per 10 gm within a few hours of the commodity market’s opening. While touching this intraday high, the MCX gold rate today hit a new lifetime high in the domestic market. In the international market, spot gold price is sustaining above $2,200 per ounce levels as the yellow metal is currently quoting around $2,206 per ounce in the spot market after retracing from the intraday high of $2,222 level.
Why gold price is skyrocketing?
On reasons that fueled gold rates today, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “Gold prices are rising across the world after the conclusion of the US Fed meeting on Wednesday. The US Fed news of three US Fed rate cuts in 2024 is the major reason for the rise in gold and other assets.”
US Fed news
Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas said, “As expected, the US Federal Reserve left the Fed fund rate unchanged at 5.25%-5.50%. However, spot gold surged on the markets heaving a sigh of relief that the US Federal Reserve’s dot plot continued to see three rate cuts in 2024. On the balance, investors found the FOMC’s stance as dovish on many counts. Fed’s Chair Powell said that strong hiring all by itself would not be a reason to hold off on rate cuts and it is not a reason for us to be concerned about inflation.”
Anuj Gupta of HDFC Securities went on to add that the MCX gold rates may continue to ascend in the near term and touch ₹67,500 per 10 gm level. He advised gold investors to maintain a stop loss below ₹65,800 per 10 gm level and maintain a buy-on-dips strategy on every big dip. In the international market, Anuj Gupta predicted that spot gold price may ascend to $2,250 per ounce levels. However, he maintained that the immediate target for the spot gold would be $2,230 per ounce.
Crude oil price in focus
Anuj Gupta of HDFC Securities further added that crude oil prices may dominate the gold price movement in the near term after the US Fed meeting.
“Crude oil prices are skyrocketing these days, which is expected to put the inflation pressure on the soaring precious metal prices and other assets. The rise in crude oil price may lend support to the gold prices as uncertainty over the inflation is directly linked with the crude oil prices,” Anuj Gupta concluded.
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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