Gold rate today at all-time high on US Fed rate cut bets. Buy, hold or book profit? | Mint
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Business News/ Markets / Commodities/  Gold rate today at all-time high on US Fed rate cut bets. Buy, hold or book profit?
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Gold rate today at all-time high on US Fed rate cut bets. Buy, hold or book profit?

Gold rate today has immediate support placed at $2,050 levels in international market while it is facing resistance at $2,125 per ounce levels, say experts

MCX gold rate today has strong support at ₹62,800 levels while it has resistance placed at ₹64,800 per 10 gm levels. (PTI)Premium
MCX gold rate today has strong support at 62,800 levels while it has resistance placed at 64,800 per 10 gm levels. (PTI)

Gold rate today: On account of US Fed rate cut buzz after Jerome Powell's speech, gold price today ascended above $2,100 levels and hit a new life-time high of $2,146 per ounce levels in early morning session in Asian stock market

Gold rate today ascended to a new life-time peak in domestic market as well. Gold future contract for February 2024 expiry on Multi Commodity Exchange (MCX), opened upside and went on to hit new life-time high of 64,000 per 10 gm levels. However, gold price retraced from new highs after profit booking trigger anc came below $2,100 levels after an hour of early morning trade.

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US Fed rate in focus

Silver rate today (March 2024 expiry) opened at 78,450 per kg levels on MCX and went on to hit intraday high of 78,549 per kg levels within few minutes of commodity market's opening bell today. In international market, silver price today is around $25.50 per ounce levels.

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Speaking on the reasons that fueled gold price to a new peak during Monday deals, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, "Gold prices are climbing in domestic and international market on US Fed rate cut bets. After Jerome Powell's speech, market is speculating interest rate cut by the US Federal REserve by March 2024. This is going to put pressure on bond yield and US dollar rates, which is already under pressure for the last one month."

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As per ICICI Securities report, gold price is rising due to weakness in the treasury yields and the US dollar. The German yields hit the most last week and slide to its four month lows. The 10 year US treasury yields hit its two and half month lows on Friday amid increasing speculation that the Fed is done with its tightening cycle even though the US Federal chair Powell dampened the expectation of significant rate cuts in the coming years. Powell in his speech said it was clear that the impact of tighter monetary policy is slowing the economy which is in line with their expectation.

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Gold price target

On important levels in regard to gold rate today, Anuj Gupta of HDFC Securities said, "Gold rate today has strong support placed at $2,050 per ounce levels whereas it is facing immediate resistance at $2,025 per ounce levels. MCX gold rate today has immediate support placed at 62,800 levels whereas it is facing hurdle at 64,800 per 10 gm levels. One can maintain buy on dips strategy as overall trend for the precious yellow metal is postive in near term."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Commodity News and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
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Published: 04 Dec 2023, 11:40 AM IST
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