Spot gold price near record high on steeper US Fed rate cut buzz. Should you buy as MCX gold rate hits two-month high?

  • Gold rate today: According to experts, market is expecting a US Fed rate cut by 50 bps, which has fueled gold price today

Asit Manohar
Updated17 Sep 2024, 11:18 AM IST
Gold rate today: Experts see more upside despite MCX gold rate hitting a two-month high and spot gold price oscillating around a record high of $2,589 per ounce mark.
Gold rate today: Experts see more upside despite MCX gold rate hitting a two-month high and spot gold price oscillating around a record high of $2,589 per ounce mark.(Photo: Reuters)

Gold rate today: Following the market buzz on a steeper US Fed rate cut, the spot gold price climbed to a new peak of $2,589 per ounce, and the Comex gold price climbed to a new peak of $2,616.50 per troy ounce on Monday dealing. In the early morning session on Tuesday, the spot gold price oscillated around $2,585 per ounce. However, at the Multi Commodity Exchange (MCX), the gold rate today hit a two-month high.

According to the commodity market experts, gold rates today are in an uptrend as the market is expecting a 50 bps US Fed rate cut, which has put the US dollar and US Treasury yield under pressure. They said that if the American central bank cuts interest rates by 50 bps in the US Fed meeting, we can expect a sharp upside in gold prices. However, they predicted sharp selling if there will be a 25 bps US Fed rate cut.

US Fed rate cut in focus

Speaking on the gold price outlook ahead of the US Fed meeting outcome, Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Market is expecting a 50 bps US Fed rate cut, which has put the US dollar rate and the US Treasury yield under pressure. Investors are now in await and watch condition and any hint of a steeper US Fed rate cut during the US Fed meeting would be enough to fuel gold prices.”

Expecting the gold prices to trade sideways ahead of the US Fed meeting outcome, IG market strategist Yeap Jun Rong said, "The rally in gold prices has taken a breather in today's session," adding that after recent gains driven by expectations of a more aggressive rate cut, there's now some caution as investors await further clarity from policymakers.

Gold rate today: Important levels to watch

“The spot gold price has made a strong base at $2,560 per ounce and it is expected to touch $2,640 per ounce mark if the US Fed announced a rate cut of 50 bps. MCX gold rates have strong support at 72,000 per 10 gm whereas it is expected to touch 74,000 after the US Fed rate cut on the expected lines,” said Anuj Gupta of HDFC Securities.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:17 Sep 2024, 11:18 AM IST
Business NewsMarketsCommoditiesSpot gold price near record high on steeper US Fed rate cut buzz. Should you buy as MCX gold rate hits two-month high?

Most Active Stocks

Bharat Electronics share price

283.95
03:58 PM | 1 OCT 2024
-1.1 (-0.39%)

Tata Steel share price

167.00
03:56 PM | 1 OCT 2024
-1.45 (-0.86%)

Tata Power share price

481.00
03:58 PM | 1 OCT 2024
-1.7 (-0.35%)

Zee Entertainment Enterprises share price

140.05
03:55 PM | 1 OCT 2024
2.4 (1.74%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Caplin Point Laboratories share price

2,080.30
03:52 PM | 1 OCT 2024
182.75 (9.63%)

PB Fintech share price

1,729.65
03:57 PM | 1 OCT 2024
113.65 (7.03%)

Welspun Living share price

175.00
03:50 PM | 1 OCT 2024
11.25 (6.87%)

National Aluminium Company share price

224.15
03:56 PM | 1 OCT 2024
13.75 (6.54%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    77,245.00-160.00
    Chennai
    77,251.00-160.00
    Delhi
    77,403.00-160.00
    Kolkata
    77,255.00-160.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.85/L-0.13
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00

    Popular in Markets

      HomeMarketsPremiumInstant LoanMint Shorts