Gold Prices Surge Amid US Economic Developments
Gold rate today: As enthusiasm builds around potential US Fed rate cuts, bolstered by recent economic indicators, gold prices are witnessing a marked increase. This morning, the MCX gold rate opened at ₹75,660 per 10 grams, quickly climbing to an intraday high of ₹75,894 shortly after the market opened. Concurrently, international spot gold prices surged by approximately 1.45%, reaching $2,645 per troy ounce.
Expert Predictions on Gold Prices
Commodity market analysts suggest the recent US Consumer Price Index (CPI) data has not caught them off guard. The job market indicators signal a downward trend, heightening speculation regarding future US Fed rate cuts. Experts predict that the MCX gold rate may surge to ₹76,000 per 10 grams in the near term, while spot gold could potentially touch $2,700 per troy ounce.
Factors Influencing the Gold Market
Alex Ebkarian, the Chief Operating Officer at Allegiance Gold, explained that the CPI report was largely as expected, and ongoing weakness in job numbers suggests that the Fed is likely to reduce rates. He stated, “The recent dip in gold prices has positioned it well for a rebound.” This sentiment is echoed by market analysts who see the current trend as a favorable environment for gold.
Geopolitical and Central Bank Demand
Ebkarian also pointed out that heightened geopolitical tensions and strong demand from central banks further support the upward trajectory of gold prices. Investors are increasingly looking towards gold as a safe-haven asset amid uncertainties in both local and global economic landscapes.
Gold Rate Today: Key Levels to Monitor
Investors are encouraged to adopt a “buy-on-dips” strategy, according to Anuj Gupta, Head of Commodities & Currency at HDFC Securities. He advised, “Gold prices are on an upward trend, and any decline should be viewed as a buying opportunity.” Significant support levels are identified at ₹74,800 per 10 grams for MCX gold, with resistance at ₹76,000. In the international market, support for spot gold is expected around $2,635 to $2,640 per troy ounce, with an anticipated rise to $2,700 soon.
US Economic Data Impact on Gold
Recent reports indicate that US consumer prices slightly exceeded expectations for September; however, the annual inflation increase remains the lowest seen in over three and a half years. In parallel, weekly jobless claims rose to 258,000 for the week ending October 5th, significantly above the estimate of 230,000. These figures strengthen the case for potential interest rate cuts, which historically favor non-yielding assets like gold.
Market Predictions and Gold’s Appeal
According to the CME FedWatch tool, there is now an 80% probability of a 25-basis-point reduction from the Federal Reserve next month, up from 76% prior to the release of the data. Lower interest rates generally make gold more attractive as an investment, leading to increased demand for the precious metal.
(With inputs from various financial analysts)
Disclaimer: The analysis and opinions expressed herein are those of individual analysts or brokerage firms and do not necessarily represent the views of Mint. It is recommended that investors consult with certified financial experts before making any investment decisions, as market conditions can fluctuate rapidly and individual circumstances may differ.
