Gold rate today witnessed enormous selling pressure after the Union Budget 2024. Gold price today on the Multi Commodity Exchange (MCX) opened with an upside gap at ₹72,838 per 10 gm. Still, the precious yellow metal came under massive selling pressure after Finance Minister Nirmala Sitharaman announced the reduction of customs duty on gold and silver from 15 percent to 6 percent. After this announcement, gold prices came under intense selling pressure, and the MCX gold rate touched an intraday low of ₹68,500 per 10 gm, recording an intraday loss of ₹4,218 during Tuesday deals. However, the precious yellow metal witnessed value buying and pared some of its lost ground on the Budget 2024 date.
According to commodity market experts, the fall in gold rates today can be seen as the market's adjustment to the new duty structure. They said that the Gold rate today has crucial support placed at ₹68,000 per 10 gm mark and provides good buying opportunities at these levels. Once a trend is reversed after a price adjustment due to a customs duty cut, gold prices may give upside movement as the current fall seems temporary.
Connecting the gold price crash with Budget 2024, Sugandha Sachdeva, Founder of SS WealthStreet, said, "As an immediate impact, the announcement has led to a sharp corrective move in the prices of gold and silver, reflecting market adjustments to the new duty structure. Further, in the short term, we may witness additional downside in gold and silver prices as the market fully absorbs the impact of the duty reduction. Investors might initially react with caution due to the immediate price volatility. However, the overall sentiment could stabilize as the longer-term benefits become more apparent."
Expecting a bounce back from the lows, Anuj Gupta, Head of Commodity & Currency at HDFC Securities, said, "The reason for the crash in gold price can be attributed to the reduction in basic customs duty (BCD) on gold and silver. So, the dip is temporary, and global triggers like US Fed rate cut buzz, sliding US dollar rates, etc. It would soon start playing its role. So, the falling gold prices can be a good opportunity for bottom fishing, but in bits. One should maintain buy-on-dips strategy till MCX gold is sustaining above ₹67,800 per 10 gm mark." He said that spot gold price is still in the $2,400 to $2,450 per ounce range, and a bullish or bearish trend can be assumed on the breakage of either side of the range.
On today's MCX gold rate outlook, Sugandha Sachdeva of SS WealthStreet said, "Gold and silver remain in a structural uptrend, yet some near-term correction is highly likely, which could present buying opportunities at lower levels. We foresee near-term support for gold at ₹68,000 per 10gm. For silver, we anticipate support at ₹82,000 to ₹80,000 per 10 gm."
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
