Gold rate today: Yellow metal extends gain on US Fed rate cut buzz. US inflation in focus

Gold rate today: Following the rising bets on the US Fed rate cut after the US CPI data, gold price today extended its rally during early morning deals. MCX gold rate opened higher at ₹75,660 per 10 gm and touched an intraday high of ₹75,894 per 10 gm within a few minutes of the Opening Bell. In the international market, spot gold price surged around 1.45% to $2,645 per troy ounce.

According to commodity market experts, the US CPI data didn't surprise them, and job numbers show a weakening trend, which has triggered the US Fed rate cut buzz. They said the MCX gold rate may touch ₹76,000 per 10 gm, whereas the spot gold price may hit $2,700 per troy ounce in the short term.

What's fueling gold prices today?

Highlighting the reason for the rise in gold rates today, Alex Ebkarian, chief operating officer at Allegiance Gold, said, "The CPI report didn't bring much of a surprise, and the jobs numbers show a trend of weakening, which puts the notion that the Fed is on track to cut rates, helping gold price rally," adding, "Last few days, saw cooling in gold's rally, so it is in a good position to go back up."

Heightened geopolitical events and strong demand led by central banks are the other positive catalysts for gold, Ebkarian of Allegiance Gold said.

Gold rate today: Important levels to watch

Advising the 'buy-on-dips' strategy to investors, Anuj Gupta, Head of Commodities & Currency at HDFC Securities, said, "Godl price today is on an uptrend, and any dip in the yellow metal price should be seen as a buying opportunity by investors. MCX's gold rate has crucial support at ₹74,800 per 10 gm, whereas the precious yellow metal faces a hurdle at ₹76,000. Likewise, spot gold price has crucial support at $2,635 to $2,640 per troy ounce while it is expected to reach $2,700 per troy ounce soon."

US economic data

US consumer prices rose slightly more than expected in September, but the annual increase in inflation was the smallest in more than 3-1/2 years. Another report showed that weekly jobless claims rose to 2,58,000 for the week ending Oct. 5, versus estimates of 230,000.

According to the CME FedWatch tool, markets now see an 80% likelihood of a 25-basis-point cut from the Fed next month versus 76% before the data. Zero-yield bullion is a preferred investment amid lower interest rates.

(With inputs from Reuters)

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