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Business News/ Markets / Commodities/  Gold price today: MCX Gold rate rises on weak US dollar, rate cut expectations; what should be your strategy for bullion
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Gold price today: MCX Gold rate rises on weak US dollar, rate cut expectations; what should be your strategy for bullion

MCX Gold prices rise in the domestic futures market influenced by favourable global cues.

As gold is priced in dollars, its weakness is positive for the yellow metal. (Agencies)Premium
As gold is priced in dollars, its weakness is positive for the yellow metal. (Agencies)

Gold prices experienced an upward movement during the morning session of trading in the domestic futures market on Tuesday, January 23, influenced by favourable global cues.

In international markets, gold prices saw an increase as the US dollar dipped, with investors eagerly anticipating interest rate decisions from various central banks and a cascade of economic data scheduled for release in the United States later in the week.

As gold is priced in dollars, its weakness is positive for the yellow metal. Besides, the expectations of rate cuts underpin gold prices. In the case of low-interest rates, the opportunity cost of holding gold is also lower, making gold more attractive.

Around 10:05 am, MCX Gold traded 0.12 per cent higher at 61,964 per 10 grams.

Also Read: Gold lags Nifty 50 in last 6 months; what's the future outlook for bullion? Here's what experts say

What should be your strategy for gold today?

While geopolitical tensions continue to provide some support to precious metals, incoming macro numbers and rate-cut talks may keep them volatile.

According to Reuters, the US flash PMI report on Wednesday, fourth-quarter advance GDP estimates due on Thursday and personal consumption expenditures data on Friday, before the Fed's next meeting on January 30-31, will be on investors' radar.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile in today’s session amid volatility in the dollar index and geopolitical tensions in West Asia.

Also Read: Bitcoin falls to $40,000, at seven-week low amid Bitcoin ETF launch

Jain underscored gold and silver have key support levels at $2,000 and $22 per troy ounce respectively in international markets. Both precious metals may see further downside if these support levels are breached.

"Gold has support at $2,008-2,000, while resistance at $2,034-2,045 per troy ounce and silver has support at $22.05-21.88, while resistance is at $22.55-22.80 per troy ounce in today’s session," said Jain.

"On the MCX, gold has support at 61,700-61,550 and resistance at 62,040-62,220 while silver has support at 70,350-69,800 and resistance at 71,250-71,700," Jain said.

He suggests buying gold on dips around 61,650 with a stop loss of 61,440 for the target of 62,100.

"Anticipating continued volatility in today's session, we note that gold finds support at $2,000-1,988, with resistance at $2,024-2,038. Meanwhile, silver has support at $21.94-21.78, and resistance is at $22.30-22.45," said Rahul Kalantri, VP of commodities at Mehta Equities.

"In the Indian rupee terms, gold has support at 60,550-60,380, with resistance at 61,090 and 61,310. Silver has support at 70,140-69,580 and resistance at 71,350 and 71,980," said Kalantri.

Brokerage firm SMC Global Securities expects gold to trade in the range of 61,700-62,000, and silver to trade in the range of 70,500-72,000, with sideways to a bearish bias.

Read all commodity-market-related news here

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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Published: 23 Jan 2024, 10:17 AM IST
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