MCX gold rate today is in ₹68,000 to ₹71,000 per 10 gm range, say experts
Asit Manohar
Updated1 Aug 2024, 12:26 PM IST
COMEX gold price today is in the $2,400 to $2,460 per troy ounce range, say experts.(Photo: REUTERS)
Gold rate today: Following weakness in the US dollar rates after the US Fed meeting on Wednesday, the gold price extended its winning streak during morning deals today. The gold futures contract on the Multi Commodity Exchange (MCX) for the October 2024 expiry opened with an upside gap at ₹69,994 per 10 gm and touched an intraday high of ₹70,065 per 10 gm within a few minutes of the commodity market's opening bell.
Commodity market experts attribute the current uptrend in gold prices to US Fed Chief Jerome Powell's remarks on cooling inflation, which have dispelled expectations of a rate cut in the September 2024 meeting. This has led to a weakening of the US dollar rate and the US Treasury yield. The escalating Israel-Palestine conflict has also contributed to the surge in demand for gold and other bullion metals. They predict that the MCX gold rate could reach ₹71,000 per 10 gm in the near term, while the COMEX gold price may touch $2,460 and $2,480 per troy ounce.
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US Fed rate cut buzz
On why the gold rate today is skyrocketing, Anuj Gupta, Head of Commodity & Currency at HDFC Securities, said, "Despite keeping the interest rates steady, the US Fed Chief Jerome Powell maintained that the US inflation has cooled down, which has fueled the US Fed rate cut buzz in September 2024 US Fed meeting. This has pressured the US dollar rates and the US Treasury yield. The US dollar index has retraced and slipped below the 104 mark. US 10-year bond yield has crashed over 1.20 percent during early morning session while the US 30-year bond yield has tanked over one percent."
Anuj Gupta of HDFC Securities underlines the role of the escalating Israel-Palestine conflict in the Middle East as a significant factor driving up gold prices worldwide.
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Weakness in US dollar rates
"Spot gold is slightly up today as the US dollar rate is weakening on the Bank of Japan hiking rates by 15 bps. The JOLTs job openings (June) came in at 8,184K Vs the estimate of 8,000K jobs, while the prior data was revised higher from 8140K to 8230K. However, the number of jobs quits decreased to the lowest level since November 2020, which can be taken as a weak point in the report. Conference Board consumer confidence (July) at 100.30 topped the forecast of 99.70. However, the prior data was revised lower," said Praveen Singh, Associate VP — Fundamental Currencies and Commodities at Sharekhan by BNP Paribas. These factors have contributed to the weakening of the US dollar, making gold a more attractive investment option.
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Gold rate today: Important levels to watch
Given the current market conditions, Anuj Gupta of HDFC Securities advises investors to adopt a buy-on-dips strategy, as the overall bias for the gold price today is positive. He predicts that the MCX gold rates could reach ₹71,000 in the near term, and the COMEX gold price may touch $2,460 and $2,480 per troy ounce soon.
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.