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Business News/ Markets / Commodities/  Gold price jumps on rate cut buzz in upcoming US Fed meeting. Opportunity to buy?
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Gold price jumps on rate cut buzz in upcoming US Fed meeting. Opportunity to buy?

Gold rate today is rising as the market is expecting an announcement of a rate cut schedule in the upcoming US Fed meeting, say experts

Gold rate today has immediate support placed at ₹61,500 on MCX and at $2,000 per ounce level at Comex, say experts. (Photo: Courtesy Senco Gold Ltd website)Premium
Gold rate today has immediate support placed at 61,500 on MCX and at $2,000 per ounce level at Comex, say experts. (Photo: Courtesy Senco Gold Ltd website)

Gold rate today: On account of rate cut buzz in the upcoming US Fed meeting scheduled from 30th to 31st January 2024, gold price today witnessed some buying interest during early morning deals. In the early morning session, the MCX gold rate opened higher at 62,080 per 10 gm level and went on to touch an intraday high of 62,295 per 10 gm within a few minutes of the commodity market's opening. In the international market, spot gold price is oscillating around $2,030 per ounce level.

According to commodity market experts, the gold rate today is in an uptrend on MCX as the market is expecting a US Fed rate cut outlook in the upcoming US Fed meeting. They said that the US Federal Reserve may remain steady on interest rates but its commentary holds key. The US central bank may announce a rate cut schedule in 2024 after the better-than-expected US economic data.

US Fed meeting in focus

On why the gold price is rising ahead of the US Fed meeting, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, "Gold prices are rising in the domestic and international market as there is a strong buzz about the US central bank announcing a rate cut schedule in 2024. After the better-than-expected US economic data in recent weeks, the market has a strong belief that it is opportune for the US Federal Reserve to start interest rate cut from March 2024 or from May 2024."

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On the possible outcome from the upcoming US Fed meeting and other triggers for the precious yellow metal price, Sugandha Sachdeva, Founder of WealthWave Insights said, "While the US Fed is expected to hold rates steady at their meeting, expectations of a rate cut are gaining traction for the May meeting, deviating from earlier projections of a March rate cut. Simultaneously, the industry awaits developments in the Interim Budget 2024, especially regarding potential cuts in gold import duties, a move that could impact domestic gold prices and shape market dynamics."

Important levels to watch

Sugandha Sachdeva said that key support for the gold rate today rests at the 61,500 per 10 gm mark, while resistance is observed at 62,700 per 10 gm level.

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On the gold price outlook in the near term, Deveya Gaglani, Research Analyst - Commodities at Axis Securities said, "We expect Gold prices to trade in a range as long as the 62,600 level is intact on the upside. On the flip side, a daily close above the mentioned level may push prices higher towards 63,000 levels in the near term."

"In the international market, the gold price has crucial support placed at $2,000 per ounce level while their resistance is placed at $2,050 per ounce mark.' On breaching this resistance, spot gold price may go up to $2,080 per ounce level whereas MCX gold rate may go up to 63,500 per 10 gm level," said Anuj Gupta of HDFC Securities.

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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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Commodity News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
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Published: 30 Jan 2024, 10:49 AM IST
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