Gold rates today: After hitting a new high of $2,323.70 per ounce in the international market, gold prices today climbed to a new peak of ₹69,908 per 10 gm on the Multi Commodity Exchange (MCX). MCX silver rate today also hit a new lifetime high of ₹79,630 per kg mark. Gold futures contract on the MCX for June 2024 expiry, today opened upside at ₹69,868 and went on to touch an intraday high of ₹69,908 per 10 gm level, which turned out a new lifetime high of the yellow metal on the MCX. Likewise, the silver futures contract on MCX for May expiry opened higher and went on to touch an intraday high of ₹79,630 per kg level, which is now a new peak of the precious white metal on the MCX.
According to commodity market experts, gold and silver prices are rising on the dovish US Fed stance on interest rates after Chairman Jerome Powell’s speech on Wednesday. They said that the US Fed chief has re-iterated the interest rate cut in the near-term, which triggered the rate cut buzz in the upcoming US Fed meeting, which is scheduled from 30th April to 1st May 2024. They said that the US dollar index retracing from the four-and-a-half-month high has also fueled bullion metal prices across bourses.
US Fed rate cut buzz
On why gold and silver prices are skyrocketing, Anuj Gupta, Head of Commodity & Currency at HDFC Securities said, “Gold and silver prices are rising on the US Fed rate cut buzz that has triggered after the Fed Chairman Jerome Powell’s speech on Wednesday. In his speech, Powell reiterated the dovish stance of the US Central Bank on the interest rate and now the market is expecting a possible rate cut in upcoming US Fed meeting schedules from 30th April to 1st May 2024.”
Anuj Gupta went on to add that the US dollar rates have also cooled after the Fed chair’s speech and the US dollar index has retraced after hitting four and half month high this week.
Speaking on other factors that are fueling gold and silver prices, Amit Goel, Co-Founder & Chief Global Strategist at Pace 360 said, “Gold and silver prices are skyrocketing because of the expected rate cuts from central banks all over the world and because it was grossly oversold and under-owned. The buying from central banks particularly China has also played its part. The geo-political tensions in Ukraine and the Middle East have also contributed to the bullishness. We expect gold to correct over the next couple of months as it has become quite overstretched while the dollar index is expected to remain relatively strong.
Important levels to look at
“In the international market, gold rate today is in the $2,2280 to $2,320 per ounce range and any dip in the yellow metal price should be seen as an opportunity to buy. On MCX, the gold rate today has immediate support placed at ₹69,000 whereas it is facing resistance at ₹80,200 per 10 gm level. Likewise, the silver rate today in the international market is in the $26.50 to $27.50 per ounce range. MCX silver rate today is in ₹78,000 to ₹80,500 per kg range. Any dip in the white metal is also a buying opportunity for investors,” said Anuj Gupta.
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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