Gold rate today jumps on ease in US Fed rate hike. Buy or wait for correction?
- Gold rate today is rising as soft US inflation data has eased US Fed rate hike buzz, say experts
Gold rate today: On account of easing fear of US Fed rate hike, gold price today extended its rally during morning deals. Gold price on Multi Commodity Exchange (MCX) for December 2023 expiry opened higher at ₹60,148 per 10 gm levels and went on to hit intraday high of ₹60,185 per 10 gm levels within few minutes of commodity market's opening bell today. In international market, spot gold price today is around $1,960 per ounce levels.
In physical market, gold rate today in Delhi is at ₹60,800 per 10 gm levels.
Silver rate today on MCX opened lower at ₹72,174 per kg levels and went on to hit intraday high of ₹72,349 per kg levels. In international market, silver price today is oscillating around $23.40 per ounce levels.
In retail physical market, silver rate today in Delhi is ₹73,500 per kg.
US Fed rate in focus
On why gold price rally extended for yet another session, Deveya Gaglani, Research Analyst - Commodities at Axis Securities said, “Softer inflation data from the USA this week increased the bet that the US Fed may pause hiking rates and will likely begin with a rate cut by mid-2024. Such a scenario will be favourable for bullion, given that higher rates push up the opportunity cost of holding gold.”
Triggers for gold price rally
On other triggers that has helpd gold rate to extend its rally, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “After soft US inflation data, US dollar has tumbled from 106 levels to around 104.50 levels. US treasury yield has also slipped from 5 per cent to around 4 per cent. This has renewed buying interest in gold and other bullion assets as investors are shifting money from bond and currency market to gold and equities.”
Important levels to look at
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 ₹58,800 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."
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.
On gold price outlook for long term investors, Deveya Gaglani of Axis Securities said, “In international market, gold prices are facing a solid hurdle around the $2070 level. As long as the mentioned level is intact on the upside, we expect prices to trade in a range between $1850 and $2070 in the coming months.”
Gold rate today in New Delhi
On gold rate today in Delhi, Anuj Gupta of HDFC Securities said, “Gold rate today in Delhi's retail bullion market is ₹60,800 per 10 gm whereas silver rate today in Delhi retail bullion market is near ₹73,500 per kg.”
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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