Gold rate today: The precious yellow metal witnessed strong buying across bourses in early morning deals. On the Multi Commodity Exchange (MCX), gold price today opened with an upside gap at ₹70,303 per 10 gm mark and touched an intraday high of ₹70,398 per 10 gm mark within a few minutes of the Opening Bell on Friday. While climbing to this intraday peak, MCX gold rate today logged an impressive over ₹250 per 10 gm rise against its previous close of ₹70,136. In the international market, the COMEX gold price is around $2,490 per troy ounce, while the spot gold price is around $2,453 per ounce.
According to commodity market experts, gold rate today is rising due to the ease in US recession fear after better-than-expected US job data. Strong US job data has blown the US recession fear buzz, and the US Fed rate cut hopes have brightened. They added that the US dollar (USD) rate has also witnessed profit booking as the US dollar index has slipped below the 103 mark.
"Gold price today is on an uptrend due to a better-than-expected US job data released on Thursday. This positive US data has eased the US recession fear, and the market is now expecting a US Fed rate cut by around 25 bps in the upcoming US Fed meeting in September 2024," said Anuj Gupta, Head of Commodity & Currency at HDFC Securities.
Reuters reported that according to the CME FedWatch tool, there is a 75 per cent chance of a 25-basis-point cut next month and a 25 per cent chance of a 50 bps reduction.
Speaking on gold price outlook, Tim Waterer, Chief Market Analyst at KCM Trade, said, "The bullish outlook for gold remains intact given the lower trajectory expected for global interest rates. The precious metal is still poised to make a possible run at $2,500," adding, "But in the absence of a pick-up in haven demand, it may require the dollar and bond yield to take a step lower for gold to reach the $2,500 level."
Advising gold investors to remain vigilant about US dollar rates, Anuj Gupta of HDFC Securities said, “US dollar rates hold the key in gold price movement. Any further dip in the US dollar index may open up a fresh upside in the yellow metal price. The US dollar index is already below the 103 mark, and once it breaches its immediate support placed at 101.50 mark, we may expect shart upside movement in the yellow metal prices.”
"MCX gold rate today is in ₹69,000 to ₹71,000 per 10 gm range. On breaching the ₹71,000 mark on a decisive basis, gold price may touch ₹72,000 and ₹73,500 in the short to medium term," said Anuj Gupta, adding, "In the international market, spot fold price is in $2,400 to $2,460 per ounce range. On breaching above $2,460 resistance, we can expect spot gold prices to touch the $2,480 and $2,500 per ounce mark."
(With Inputs from Reuters)
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