Gold rate today on MCX traded higher tracking gains in international bullion prices led by safe-haven demand amid tensions in the Middle East. Gold price was also supported by increasing bets that the US Federal Reserve may reduce interest rates later this year.
MCX gold traded 0.18% higher at ₹72,715 per 10 grams, while silver was down 0.51% at ₹91,100 per kg. In the international market, spot gold was up 0.1% at $2,362.60 per ounce, after hitting a two-week high in the previous session.
Bullion has gained over 1% so far for the week, adding to their 1.7% increase last week. US gold futures rose 0.3% to $2,376.50 on the day, Reuters reported. Spot silver fell 0.3% to $30.61 per ounce.
Read here: Gold and silver prices today on 21-06-2024: Check latest rates in your city
“Gold prices rose as recent US economic data showed signs of a slowdown in the economy. Gold price outlook remains positive amid expectations of interest rate cuts by global central banks. The trend in domestic and international gold rates is likely to continue to remain strong next week also,” said Ajay Kedia
Meanwhile, tensions in the Middle East escalated after several Israeli air strikes in the Gaza Strip on Thursday killed at least 14 people.
Additionally, data showed first-time applications for US unemployment benefits fell moderately last week, while new housing construction dropped. This, along with tepid retail sales last month, keeps the chance of a September rate cut on the table, Reuters reported.
Market participants will now focus on the US flash purchasing managers’ indexes later today.
According to Kedia, MCX gold rate may find support at ₹72,100 level and resistance is seen at ₹73,680 level.
“Gold-Silver ratio has fallen below 80 and is likely to drop further which means silver prices may outperform gold,” Kedia said.
Support for MCX silver is placed at ₹88,500 and it may face resistance at ₹96,000 level, Kedia added.
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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