Gold rate today: Extending the Wednesday evening rally on yet another session, gold price today witnessed strong buying interest during the commodity market’s opening bell. On the Multi Commodity Exchange (MCX), gold rates today (June 2024 expiry) opened upside at ₹71,278 per 10 gm, around ₹550 higher from its previous close. In the international market COMEX gold price today is up by more than 0.75 percent and it is quoting around $2,328 per troy ounce.
Speaking on the reason for the rally in gold price today, Anuj Gupta, Head of Commodity & Currency at HDFC Securities said, “Gold price today is in uptrend after the cautious approach by the US Fed in FOMC meeting. The US Fed chairman has downplayed the US Fed rate high buzz, which has gone down well in the bullion market.”
Also Read: US Fed policy: Rates remain unchanged; what should Indian investors do?
The HDFC Securities expert went on to add that the cautious US Fed approach on the interest rate has triggered profit-booking in the currency market and the US dollar rates have been dropping since Wednesday evening. He said that the US dollar index has come down to the tune of 105.50 levels after inching close to 106.50 levels on Tuesday.
US Fed meeeting outcome in focus
On how the US Fed meeting outcome is going to impact gold price today, Sugandha Sachdeva, Founder of SS WealthStreet said, ‘Gold prices have witnessed a rebound after the recent bout of corrective moves seen towards the end of April. This can be attributed to the shift in sentiment surrounding monetary policy by the US Federal Reserve. The yellow metal reacted positively as the US Fed downplayed the possibility of rate hikes and indicated that it is eventually leaning towards the monetary easing cycle. Despite the recent rebound in gold prices prompted by signals of a potential easing cycle from the US central bank, it’s important to note that the central bank has maintained a cautious stance. While there are indications of a cooling inflationary environment, the Fed has emphasized the need for greater confidence that inflation will reach the targeted 2 percent level before initiating any rate cuts.”
Sugandha Sachdeva of SS WealthStreet said that the US Fed’s cautious approach reflects the central bank’s commitment to ensuring stability in the economy and the financial markets. By waiting for inflation to show sustained momentum towards the target, the Fed aims to avoid premature policy actions that could potentially destabilize the economy or lead to unintended consequences.
Gold price outlook
“As for the price outlook, gold in the international markets is seen finding some cushion around the $2300-2280 per ounce zone while at the domestic markets, prices are underpinned by the Rs.70500-70400 per 10gm zone, leading to an uptick in prices. Looking ahead, while a recovery in gold prices is anticipated, significant resistance is expected around the $2400 per ounce mark or Rs.72600 per 10gm level in the near term,” Sugandha 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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