Gold price today: MCX gold rate jumps above ₹98,000 as US inflation raises Fed rate cut hopes; US dollar rate in focus

Gold prices on MCX rose on Thursday, tracking gains in international bullion prices, as lower than expected US inflation data raised interest rate cut hopes. Escalating geopolitical tensions in the Middle East also increased safe-haven appeal for the yellow metal.

MCX gold prices opened at ₹97,650 per 10 grams, up by ₹946, or 0.97%, as against its previous close of ₹96,704. Silver prices also opened higher at ₹1,05,850 per kg as compared with its previous close of ₹1,05,392.

At 9:10 AM, MCX gold rate was up by 1.38%, or by ₹1,334, at ₹98,038 per 10 grams, while MCX silver rate was up by ₹843, or by 0.80%, at ₹1,06,235 per kg.

In the international bullion market, gold prices rallied amid rising tensions in the Middle East and a weaker dollar. Softer-than-expected US inflation data boosted expectations of Federal Reserve rate cuts, Reuters reported. Spot gold price rose 0.6% to $3,372.46 an ounce, while US gold futures gained 1.5% to $3,393.

The US dollar index fell to a near two-month low, making greenback-priced bullion more attractive to overseas buyers. Additionally, the Indian rupee appreciated against the US dollar. The rupee opened 8 paise higher at 85.43 per USD a against its previous close of 85.51 per dollar.

“Gold remains well-supported in the near term. With inflation data (PPI) and jobless claims due later today, price action may remain volatile. However, sustained weakness in the dollar and elevated geopolitical risks suggest a bullish bias,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.

Ajay Kedia, Director of Kedia Advisory also noted that the escalating tensions in the Middle East and increased Fed rate cut hopes due to soft US inflation have raised safe-haven appeal for gold.

“Technically, the gold-silver ratio has also risen after falling 15% in the past 50 days. This suggests buying in gold prices and the yellow metal may outperform silver prices in teh near term,” Kedia said.

Gold Price Outlook:

According to Jigar Trivedi, a break above $3,375 level in gold prices could pave the way for a test of $3,400 in the coming sessions.

“On MCX, gold rate may find support at ₹97,500 level, while resistance is seen at ₹98,400 level,” Trivedi said.

Kedia believes MCX gold prices may face resistance at ₹98,880 level and find support at ₹96,640 level.

“For MCX silver prices, support is seen at ₹1,05,250 level, while resistance is placed at ₹1,07,840 level,” Kedia said.

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