Gold price today: Rates rise ahead of June CPI data; what should be your strategy for MCX Gold today?

Gold price today: Gold has seen decent gains this year due to expectations of rate cuts, geopolitical uncertainty, and the strong buying of yellow metal by major global central banks.

Nishant Kumar
First Published10 Jul 2024, 01:05 PM IST
Gold price today: Rates rise ahead of June CPI data; what should be your strategy for MCX Gold today?
Gold price today: Rates rise ahead of June CPI data; what should be your strategy for MCX Gold today?(Agencies)

Gold price today: Gold prices were up in morning trade in the domestic futures market on Wednesday, July 10, mirroring trends in the international markets as investors awaited key US inflation data to gauge the trajectory of the US interest rate.

Hopes that the US Federal Reserve will start reducing interest rates in September this year, after Fed Chair Jerome Powell said inflation was easing, supported gold prices.

Also Read | Gold beats Nifty 50 in H1CY24; will the shine last? What should investors do?

In his testimony to the Senate on Tuesday, Powell highlighted inflation as moderating but reiterated that the central bank sought more data to be confident about the declining inflation trajectory.

Powell underscored the risks of elevated interest rates for a longer period in his testimony. The Fed Chair will speak before the Congress on Wednesday.

Also Read | Expert view: Gold may touch ₹70,000 in next 1-2 months, says Kothari of Augmont

Meanwhile, the US consumer price index (CPI) data for June is due on Thursday. Experts expect it to show a marginal rise of 0.1 per cent month-on-month and 3.1 per cent year-on-year. The Fed wants inflation to be below 2 per cent.

MCX Gold for August 5 delivery traded 0.33 per cent higher at 72,636 per 10 grams around 12:30 pm.

Also Read | Gold price climbs to six-week high on rising optimism for US Fed rate cut

Gold has seen decent gains this year due to expectations of rate cuts, geopolitical uncertainty, and the strong buying of yellow metal by major global central banks.

"Fed Chair is watchful of economic data points as he accepted that keeping rates too high could jeopardise economic growth. Updates regarding geopolitical tensions in the Middle East also support the risk premium in the market," said brokerage firm Motilal Oswal.

What should be your strategy for MCX Gold today?

Gold prices are expected to remain steady on Wednesday ahead of Powell's testimony before Congress and US inflation data on Thursday.

Motilal Oswal expects gold to trade in a range of 72,200-73,000, with support at 72,300-72,100 and resistance at 72,750-72,925.

According to Saish Sawant Dessai, an analyst of base metals at Angel One, gold prices may remain steady as investors await US inflation data for clues on future interest rate changes.

"Support for gold is placed at 72,970 - 72,610, while resistance is seen at 72,650 - 72,940 levels," said Sawant.

MCX Gold August is expected to hold the key support of the 10-day EMA (exponential moving average) at 72,100 and move towards 72,800. Above 72,800, it would open the doors for 73,200, according to ICICI Direct.

“Focus now shifts to the US inflation report, which would give more clarity on the timing of the first interest rate cut in the US. Any sign of moderation in the inflation number would increase the chances of a September rate cut. Further, a rise in holdings by physically backed gold ETFs would also support the bullion in holding its ground firm,” ICICI Direct said in a note.

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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.

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First Published:10 Jul 2024, 01:05 PM IST
HomeMarketsCommoditiesGold price today: Rates rise ahead of June CPI data; what should be your strategy for MCX Gold today?

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