Gold price today: MCX gold futures for April delivery are trading 0.11 per cent lower at 64,772 per 10 gram.
On March 5, gold prices reached a record high fueled by increased speculation of an imminent interest-rate cut by the US Federal Reserve in June this year. Traders sought refuge in the precious metal as a safe-haven asset. The focus now turns to Federal Reserve Chairman Jerome Powell’s two-day congressional testimony.
The yellow metal is renowned for its role as a store of value during economic uncertainties. Its prices stands to gain from central bank easing of its monetary policy.
“We expect gold to trade lower towards 64600 levels, a break of which could prompt the price to move lower towards 64460 levels,” said Saish Sandeep Sawant Dessai, Analyst, base metals, Angel One Ltd. Gold exerts downward pressure on bond yields and the dollar.
Meanwhile, spot gold flew as high as $2,141 an ounce and traded around $2,124 on Asia day.
Silver price for May delivery are trading at 0.07 per cent lower at 73,320 per kg.
“The central banks are buying more than 1,000 tons of gold consecutively from last two years versus the historic average of 300 (tons). This has made-up for all the loss in the retail and ETF demand,” said Kunal Shah, head of research, Nirmal Bang Commodities, Mumbai.
“Gold’s rally is sentiment driven, which was triggered by last week’s poor U.S. economic data that gave little more clarity for a June rate cut,” said Ajay Kedia, director at Kedia Commodities,
Spot platinum rose 0.4 per cent to $884.16 per ounce, and palladium rose over 1 per cent to $958.20, while silver dropped 0.3 per cent to $23.63.
-With inputs from Reuters
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First uploaded on: 06-03-2024 at 12:30 IST
