Gold price today: MCX Gold rate crashes nearly 1% on hawkish comments from US Fed Chair

Gold price today: Hawkish comments from US Federal Reserve Chair Jerome Powell dampened investor sentiment for gold, causing the price of the yellow metal to drop nearly 1 per cent in the domestic futures market during the morning session on Wednesday, February 12.

MCX Gold for April 4 contract opened 0.70 per cent lower at ₹84,926 per 10 grams against the previous close of ₹85,523. However, within a few minutes after opening, the yellow metal declined as much as 0.84 per cent to the level of ₹84,807. Around 9:40 AM, MCX Gold's April 4 contract was 0.78 per cent down at ₹84,452 per 10 grams. The yellow metal's same contract had hit an all-time high of ₹86,360 per 10 grams in the previous session on February 11.

International gold prices also witnessed profit booking after rising to an all-time high in the previous session.

While Powell's hawkish comment signalled slower rate cuts this year, investors focused on US inflation reports due this week.

The US Consumer Price Index (CPI) print is due later today, and the Producer Price Index (PPI) report will be out on Thursday.

US Fed Chair Jerome Powell reaffirmed the central bank’s cautious stance on interest rates during his testimony before Congress on Tuesday, stating that inflation remains elevated while the job market remains strong.

Powell's comment signals there could be fewer rate cuts this year amid prevailing uncertainty surrounding US President Donald Trump's trade policies and their macroeconomic implications.

Experts fear that Trump's policies could trigger a widespread trade war, significantly impacting global economic growth. They may also drive up inflation in the US and undermine the central bank's efforts to keep it under control.

While Fed officials had projected two rate reductions this year, analysts are increasingly sceptical. Economists at Morgan Stanley now predict just one rate cut in 2025, with investors pricing in a potential cut in July.

Gold prices tend to gain during economic uncertainty. However, elevated interest rates are negative for the yellow metal.

In recent times, geopolitical uncertainty, aggressive buying by central banks, and retail investors' focus on safe-haven assets have boosted gold prices.

In India, the rupee's weakness, subdued stock market sentiment and healthy spot demand have contributed to gold prices.

MCX Gold trade strategy for today

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $2,872-2,855 and resistance at $2,924-2,940. Silver has support at $31.55-31.32 and resistance at $32.00-32.19.

In INR, Kalantri finds support for gold at ₹85,170-84,760, while resistance at ₹85,880- ₹86,240. Silver has support at ₹93,850- ₹93,150, while resistance at ₹95,250- ₹95,850.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week.

He suggests selling gold around ₹85,800 with a stop loss of ₹86,220 for the target of ₹85,000.

"Gold has support at $2,914-2,896, while resistance at $2,950-2,970 per troy ounce and silver has support at $32.00-31.66, while resistance is at $32.64-33.00 per troy ounce in today’s session," said Jain.

"MCX Gold has support at ₹85,100- ₹84,660 and resistance at ₹85,820- ₹86,350 while silver has support at ₹93,750- ₹92,800 and resistance at ₹95,200- ₹96,000," Jain said.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.