Gold rate today: On account of the rising US dollar rate against the major global currencies, gold prices witnessed profit-booking after touching a new all-time high of ₹66,356 per 10 gm on the Multi Commodity Exchange (MCX). Gold futures contract on MCX for April 2024 expiry ended at ₹65,545 per 10 gm level on Friday last week, logging more than ₹800 dip against the new peak. According to commodity market experts, this dip in the yellow metal is mere profit booking, which was triggered after the rise in the US dollar. They said that the US dollar gained support from hotter-than-expected US CPI data and PPI print. They said that MCX gold rate today is in the ₹64,300 to ₹66,000 range and a bullish or bearish trend can be assumed on the breakage of either side of the range. However, they advised gold investors to maintain a 'buy or dips' strategy on every 2 percent to 3 percent dip from current levels.
Speaking on the reasons that paused the gold price rally, Sugandha Sachdeva, Founder of SS WealthStreet (Formerly WealthWave Insights) said, "Following a surge that brought gold prices to record highs of close to the $2200 per ounce mark, the past week witnessed a phase of profit booking and consolidation. The resurgence of the US dollar index to a one-week high, fuelled by hotter-than-expected US CPI and PPI prints for February, tempered expectations of an imminent rate cut. Despite the consumer price index slightly surpassing expectations at 3.2% year-on-year compared to an anticipated 3.1% rise, gold prices are still largely supported as market participants remained hopeful of forthcoming rate cuts throughout the year."
On the risk-reward ratio for gold investors in the current bullion market, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, "Despite profit-booking at record high levels, gold prices have logged around 5 percent rally in the last two weeks. So, my suggestion to long-term investors is to wait for some more correction. Taking a long position after a 2-3 percent correction is more advisable. The same investment pattern applies to silver investors."
Advising gold investors to remain vigilant about the news around the US Fed meeting, Sugandha Sachdeva said, "All eyes are now focused on the upcoming Fed meeting, where market participants eagerly await clues regarding the rate cut trajectory of the US central bank, which will heavily influence the near-term trend of the precious metal. There's palpable market anxiety surrounding whether the central bank will opt for a more cautious and measured approach to rate reductions."
"In terms of the key levels, surpassing the ₹66,000 per 10 gm mark is crucial to sustain buying momentum; otherwise, profit booking could trigger a knee-jerk reaction in prices. Looking ahead to the next week, gold is likely to find support at the $2,120 per ounce mark, corresponding to around ₹64,300 per 10gm at the domestic markets," said Sugandha Sachdeva of SS WealthStreet.
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.
