Gold rate today: Gold price retraces from three-week high despite US Fed rate cut buzz, weak US dollar. Buy or wait?

Gold rate today: Despite the US Fed rate cut buzz and falling US dollar rates, gold prices, known for their volatility, retraced from the three-week high in early morning deals. This rapid change in prices is a clear indicator of the dynamic nature of the gold market. The gold futures contract on the Multi Commodity Exchange (MCX) for the June 2024 expiry opened lower at ₹72,907 per 10 gm and touched an intraday low of ₹72,853 per 10 gm. In the international market, COMEX gold price oscillates around $2,380 per troy ounce, whereas spot gold price is hovering around the $2,377 per ounce mark.

US Fed rate cut buzz

Discussing the immediate triggers that could shape gold rates today, Anuj Gupta, the Head of Commodity & Currency at HDFC Securities, commented, “Yesterday, the US jobless claim data remained flat but outperformed the market estimates, a development that is expected to lend support to gold prices.” Gupta further noted that the US jobless claim data has stoked speculation about a potential US Fed rate cut following the release of US CPI data.

Anticipating the influence of the US Fed rate cut buzz on gold prices today, a report by Kotak Securities stated, “COMEX Gold prices experienced a slight dip after reaching a three-week high of $2402.7 per troy ounce earlier in the session. This was driven by a moderation in US Core CPI in April, marking the first decline in six months and suggesting a gradual alleviation of persistent price pressures. Additionally, US retail sales unexpectedly stagnated, falling short of the projected 0.4 percent increase, indicating a slight softening in consumer demand. As a result, market expectations for a rate cut in September surged to 72 percent and to 84 percent for November.”

Gold rate today: Important levels to look at

Advising ‘buy-on-dips’ strategy to gold investors, Anuj Gupta of HDFC Securities said, “MCX gold rate today has crucial support placed at ₹72,500 per 10 gm and on the upper side, it is facing hurdle at ₹73,200 mark. On breaching the upper hurdle, gold price may witness a fresh rally.”

Gupta said that the current weakness is mere profit-booking as global cues like the US Fed rate cut buzz and weakness in the US dollar rates are expected to lead to support at the lower levels.

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.