Gold rate today jumps as soft US inflation data pulls down US dollar index to 10-week low

Gold rate today: On account of US dollar index nosediving to 10-week low after the release of soft US inflation data, gold prices witnessed some fresh buying in early morning deals on Wednesday. Gold future contract on Multi Commodity Exchange (MCX) for December 2023 expiry opened higher and went on to hit intraday high of ₹60,224 per 10 gm levels within few minutes of commodity market's opening bell today. Spot gold price is currently oscillating around $1,965 per ounce levels.

Silver rate today on MCX opened at ₹71,794 per kg levels and went on to hit intraday high of ₹71,795 per kg levels withing few seconds of opening bell today. In international market, silver price today is around $23 per ounce levels.

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US inflation  data in focus

Speaking on gold price rally, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “Overall outlook for gold is positive as US dollar rate has fallen against major global currencies. The US dollar index has come close to 104 levels after US consumer prices index (CPI) data showed that underlying inflation slowed in October, increasing the odds that the Federal Reserve is done hiking interest rates.”

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Advising buy on dips strategy for gold investors, Amit Sajeja, Vice President — Research at Motilal Oswal said, “Israel-Hamas war is still there and it is expected to put breaks on any big dip in the yellow metal price. Immediate support for spot gold price today is around $1,935 per ounce levels whereas MCX gold rate today has immediate support placed at ₹58,300 levels. On higher side, gold price today has major hurdle placed at $1,980 levels whereas MCX gold rate today is facing resistance at ₹60,300 per 10 gm levels.”

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Motilal Oswal expert went on to add that inflation is going to put pressure on the US dollar rates, which is supportive for gold price rally. He said that once MCX gold rate braches ₹60,300 levels decisively, we can expect the yellow metal price to go up to ₹62,000 per gm levels.

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.