Gold Prices Today: Yellow metal on track to hit first weekly gain in four on renewed US Fed rate cut hopes

Gold Prices Today: Gold prices rose more than one per cent as lower rates tend to boost appeal for non-yielding bullion by making it a more attractive investment, compared with other assets such as Treasury bonds

Nikita Prasad
First Published14 Jun 2024, 10:04 PM IST
Gold and diamond jewellery at a jeweller shop in Defence Colony in Delhi; Photo by Priyanka Parashar
Gold and diamond jewellery at a jeweller shop in Defence Colony in Delhi; Photo by Priyanka Parashar

Gold Prices Today: Gold prices rose more than one per cent on Friday, June 14 and were on track for their first weekly gain in four, driven by slowing inflation in the US, which has renewed hopes of a rate cut later this year by the Federal Reserve, while a stock selloff across Europe also lent some support to prices.

Spot gold was up 1.2 per cent at $2,331.69 per ounce. Bullion has gained 1.6 per cent so far this week. US gold futures rose 1.3 per cent to $2,347.40. Spot silver rose 0.5 per cent to $29.13 per ounce after hitting its lowest level in nearly one month in the previous session, according to news agency Reuters. 

Also Read: Nifty 50 to hit 25,816 in 12 months; PL overweight on banks, auto, telecom: ITC, BEML among high conviction picks

Platinum was up 0.6 per cent at $951.88 and palladium gained 0.8 per cent to $890.25. Coming to domestic prices, gold futures last traded 0.01 per cent lower at 71,955 per 10 grams on the multi-commodity exchange (MCX).

Gold prices pick up steam: What's driving the yellow metal?

-In wider financial markets, European stock indices dropped as French assets took a beating due to the country's political turmoil. The cautious mood prevailed on Wall Street, with investors pausing after strong gains in the S&P 500 and the Nasdaq indexes. 

Also Read: US Fed holds key rates elevated at 23-year high, expects single 0.25% reduction in 2024; 5 key takeaways

-Analysts said that the combination of weaker equities, and some interest rate declines (in Fed funds futures pricing) are reigniting interest in gold, despite of the fact that the Federal Reserve has moved the dots at its recent Fed meeting.

-Traders raised their bets to price in about 52 basis points (bps) of cuts (or two quarter-point cuts) by December-end after softer inflation data this week. That was an increase from 37 bps last Friday, when a stronger-than-expected jobs report doused early rate cut hopes, according to LSEG's interest rate probability tool, IRPR. 

-Lower rates tend to boost appeal for non-yielding bullion by making it a more attractive investment, compared with other assets such as Treasury bonds. US government this week showed consumer prices were unchanged in May for the first time in nearly two years, while producer prices unexpectedly declined.

-However, the US Federal Reserve's median "dot plot" released after its two-day policy meeting - where it kept interest rates steady - showed the policymakers projecting just one quarter-point cut. Analysts said there could be continued pull below $2,300 in the near term as the market reassesses the dots.

Also Read: HDFC Bank vs Axis Bank: Which bank stock should you buy for long-term? Here's a 5-point analysis

Where are prices headed?

Analysts said that gold and silver prices slipped amid a rebound in the dollar index following the Federal Reserve's hawkish comments on interest rate cuts. US jobless claims surged once again last week to 242,000, compared to the expected 225,000, which could support gold and silver prices at lower levels.

‘’Gold has support at $2,288-$2,272, with resistance at $2,322-$2,340. Silver has support at $28.85-$28.65, with resistance at $29.28-$29.45. In INR, gold has support at 70,890-70,680, with resistance at 71,420-72,640. Silver has support at 87,340-86,780, with resistance at 88,720-89,450,'' said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

In Indian prices, analysts noted that gold experienced a volatile week, finding support around 70,700 and resistance near 72,150. Despite minor gains of 350, gold remained positive as lower inflation data supported prices. 

‘’However, the Fed's somewhat hawkish policy outcome kept pressure on gold. For the next week, gold prices are expected to trade within a range of 70,000 to 72,500,'' said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
 

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.

 

 

 

 

Catch all the Commodity News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.MoreLess
First Published:14 Jun 2024, 10:04 PM IST
HomeMarketsCommoditiesGold Prices Today: Yellow metal on track to hit first weekly gain in four on renewed US Fed rate cut hopes

Most Active Stocks

Indian Oil Corporation

166.90
03:58 PM | 12 JUL 2024
-7.6 (-4.36%)

Tata Steel

168.70
03:58 PM | 12 JUL 2024
-0.3 (-0.18%)

Bharat Electronics

333.30
03:59 PM | 12 JUL 2024
-2.25 (-0.67%)

Wipro

560.05
03:56 PM | 12 JUL 2024
25.7 (4.81%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

KPIT Technologies

1,864.00
03:57 PM | 12 JUL 2024
154.25 (9.02%)

Inox Wind

171.90
03:59 PM | 12 JUL 2024
13.85 (8.76%)

Zensar Technologies

768.20
03:29 PM | 12 JUL 2024
50.45 (7.03%)

Coforge

5,950.05
03:29 PM | 12 JUL 2024
386.65 (6.95%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,481.000.00
    Chennai
    73,972.000.00
    Delhi
    74,771.000.00
    Kolkata
    73,972.000.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.76/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanMint Shorts