Gold Rate Today: Yellow metal falls below ₹72,000 per 10 grams; Analysts suggest ‘buy on dips’

  • Gold Rate Today: Gold prices slipped as the dollar rose, while investors awaited a key US inflation report due this week for more clarity on the size of a likely September rate cut by the US Federal Reserve.

Ankit Gohel
Published28 Aug 2024, 10:41 AM IST
Gold Rate Today: Yellow metal falls below  <span class='webrupee'>₹</span>72,000 per 10 grams; Analysts suggest buy on dips
Gold Rate Today: Yellow metal falls below ₹72,000 per 10 grams; Analysts suggest buy on dips

Gold Rate Today: Gold prices traded lower on MCX on Wednesday tracking weakness in international bullion prices amid an uptick in US dollar. Silver prices also declined nearly half a percent on the domestic bourse.

MCX gold rate fell by 201, or 0.28%, to 71,921 per 10 grams, while silver price traded lower by 388, or 0.44%, to 87,950 per kg.

International gold prices slipped as the dollar rose, while investors awaited a key US inflation report due this week for more clarity on the size of a likely September rate cut, Reuters reported.

Spot gold fell 0.4% to $2,514.11 per ounce. Bullion hit a record high of $2,531.60 on August 20. US gold futures were down 0.2% to $2,549.00.

The dollar index gained 0.1%, diminishing gold’s attractiveness for foreign currency holders.

Also Read | Gold and silver prices today on 28-08-2024: Check latest rates in your city

“Comex gold eased this morning as investors awaited fresh cues on the scale of the Fed's interest rate cut. Nonetheless there is uncertainty over speed and frequency of a rate cut this year. Markets are looking forward to a slew of economic data this week, including the PCE index, the Fed’s preferred inflation gauge, and the second estimates of Q2 GDP figures,” said Jigar Trivedi, Senior Research Analyst - Currencies & Commodities at Reliance Securities.

Traders have fully priced in a US Federal Reserve easing for next month, with a 67% chance of a 25-basis-point cut and about 33% chance of a bigger 50-bps reduction, according to the CME FedWatch tool. Non-yielding bullion tends to thrive in a low-interest-rate environment.

Additionally, Market participants also await the release of the US personal consumption expenditure (PCE) data on Friday.

“Dovish statements from Fed officials, who have highlighted rising risks to the labour market while expressing confidence that inflation will return to target, have underpinned these expectations. Elsewhere, bullion’s safe-haven appeal has been continuously boosted by elevated tensions in the Middle East,” Trivedi added.

Also Read | Fed rate cuts are coming, but investors disagree on the path forward

Gold Price Levels

MCX Gold October may drop to 71,700 per 10 grams but the undertone is bullish and we recommend going long on every dip, Trivedi said.

According to Rahul Kalantri, VP Commodities, Mehta Equities Ltd, gold has support at $2,498 - $2,478 and resistance at $2,535 - $2,551. Silver has support at $29.62 - $29.45 and resistance at $30.14 - $30.34.

MCX gold support is seen at 71,880 - 71,650, with resistance at 72,350 - 72,520. MCX silver has support at 84,850 - 84,150, while resistance is at 85,980 - 86,650, Kalantri said.

(With inputs from Reuters)

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 making any investment decisions.

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First Published:28 Aug 2024, 10:41 AM IST
Business NewsMarketsCommoditiesGold Rate Today: Yellow metal falls below ₹72,000 per 10 grams; Analysts suggest ‘buy on dips’

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