Gold price rebounds ahead of US retail sales data. US Fed rate cut in focus

Gold rate today witnessed bulls' attention during the early morning session. The gold futures contract on the Multi Commodity Exchange (MCX) for August 2024 expiry opened upside at ₹71,575 per 10 gm and touched an intraday high of ₹71,692 within a few minutes of the opening bell. In the international market, COMEX gold price oscillated around $2,340 per troy ounce, whereas spot gold price quoted $2,325 per ounce.

According to the commodity market experts, the gold price today is on the rise, driven by the anticipation of positive US retail sales data and a timeline from the US Fed members' speech on Tuesday. They predict that gold prices will remain range-bound until the outcome of these significant events is public. In light of this, they advise investors to maintain a buy-on-dips strategy, as the MCX gold rate is currently in the ₹71,000 to ₹72,000 range, and the spot gold price is in the $2,310 to $2,340 per ounce range. This strategy could potentially lead to profitable returns.

US retail sales, US Fed rate cut in focus

Highlighting the reason for today's rise in gold prices, Anuj Gupta, Head of Commodity & Currency at HDFC Securities, said, "It's a relief rally after Monday's negative close. Today's gold price is expected to remain range-bound as investors are waiting for the US Fed members' speech. The market is expecting a timeline for interest rate cuts as the US Fed has declared one rate cut in 2024 in the recently held FOMC meeting."

On triggers that may dictate gold price Today, Praveen Singh, Associate VP — Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, said, "Today's major US data on tap include retail sales advance (May) and industrial production (May). A softer-than-expected retail sales report may help the metal recoup some of its losses. However, traders will pay attention to Fedspeak, too, as they want to assess the rigidity of the hawkish FOMC outcome. Quite a few speakers will go on air Today." He also said that spot gold price is expected to range trade ahead of the US retail sales data.

Gold rate today: Important levels to watch

Regarding the important levels of the gold price, Anuj Gupta of HDFC Securities reiterates, "The MCX gold rate is expected to trade in the ₹71,000 to ₹72,000 per 10 gm range, and the spot gold price is expected to trade in the $2,310 to $2,340 per ounce range. In light of this, gold investors are strongly advised to maintain the buy-on-dips strategy and avoid taking any short positions. The overall trend is looking sideways to positive, providing a secure investment opportunity." This reassurance in the strategy can make the audience feel secure in their investment decisions.

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.