Gold price today: MCX Gold price opens lower on US rate cut recalibration; Middle East tensions in focus

  • Gold price today: MCX Gold price slipped in today's session after the US Fed chief tempered expectations of aggressive interest rate cuts. With Middle East tensions could prove to be a positive catalyst for the gold prices.

Ujjval Jauhari
Published3 Oct 2024, 09:25 AM IST
Gold price today: MCX Gold rate in focus on rising tension in the  Middle East.
Gold price today: MCX Gold rate in focus on rising tension in the Middle East.

Gold price today: MCX Gold price opened at 76,114 per 10 grams on Thursday, 3 October, 0.36 per cent lower than its previous close of 76,390 on Tuesday. The bullion further declined to 76,091 per 10 grams during the day despite rising tensions in the Middle East.

The commodity market remained closed on Wednesday on account of Gandhi Jayanti. 

Also Read | Stock market today: 5 stocks to buy or sell on Thursday — October 3

Gold prices have seen a favourable trend led by interest rate cuts by the US Federal Reserve. The rising tensions between Iran and Israel in the Middle East are contributing to uncertainty in the region, which is likely to drive gold prices higher.

On September 12, the US Fed lowered benchmark rates by 50 basis points to begin its cycle of rate reductions. The central bank is widely expected to lower rates by a further 75–100 basis points this year.

Also Read | Iran-Israel war: How escalating conflicts in the Middle East affect stocks, gold

Positive catalysts for gold prices thereby currently include geopolitical concerns, economic uncertainty, and rate reductions.

“Market participants are closely watching this data-packed week, with the prime focus on Non-Farm Payrolls and Unemployment data scheduled for Friday. The overall trend remains bullish, with support placed at 75,000 and resistance at 76,250- 76,400 in MCX. Any significant deviation in the data could impact gold's short-term movement,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

US rate cut expectations recalibrated

On the US rate cut front, there has been some recalibration in market expectations regarding upcoming cuts following comments from Fed Chair Jerome Powell.

The Fed chief tempered expectations of aggressive interest rate cuts at the 66th NABE Annual Meeting that helped push the dollar higher towards the 101 level.

The CME FedWatch tool as per Tuesday data assigned a 61.8% probability to a 25 basis point rate cut at the November meeting, a significant increase from 46.7% just a day prior. However, Middle East tensions now have increased economic uncertainties and pushed oil prices higher, which could impact central banks' rate-cutting trajectory.

 

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 decisions

 

 

 

 

 

 

 

 

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First Published:3 Oct 2024, 09:25 AM IST
Business NewsMarketsStock MarketsGold price today: MCX Gold price opens lower on US rate cut recalibration; Middle East tensions in focus

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