Gold Price Today, During the initial week of 2024, the spot gold prices held steady between $2,010 and $2,080 per ounce, while on the Multi Commodity Exchange (MCX), the precious metal traded within the range of ₹62,250 to ₹63,500 per 10 grams. The gold futures contract set to expire in February 2024 on MCX concluded at ₹62,579 per 10 grams, positioning itself about ₹1,500 below its record high of ₹64,064 per 10 grams.
Despite this, experts in the commodity market are optimistic about a potential rebound in the MCX gold rate. They anticipate a resurgence as the current levels are near key support levels, and the prevailing selling pressure on the US dollar is expected to generate buying interest at lower levels.
Gold Price Today: Gold prices reach all-time high
As per commodity market experts, the release of last week’s US Federal Reserve meeting minutes alleviated inflation concerns, but the timing of a potential Fed rate cut remains uncertain. Consequently, attention has now shifted to upcoming events in the following week. Key triggers include the release of the US Consumer Price Index (CPI) data and movements in the US dollar.
Experts are advising gold investors to stay vigilant, particularly in light of the forthcoming US CPI data. Additionally, they suggest adopting a ‘buy on dips’ strategy, anticipating a potential rebound from the current support levels of $2,010 in the international market and ₹62,250 per 10 grams on the MCX.
Gold Price Rollercoaster: Week in Review, WealthWave Insights
Gold Price Today, Discussing the movement in gold prices during the past week, Sugandha Sachdeva, Founder at WealthWave Insights, remarked, “In the first week of the year, gold prices experienced fluctuations within a broad range, with the metal registering a 0.97 percent decline, shedding some of its recent gains.
The significant development of the week was the release of the minutes from the last Federal Reserve meeting, revealing a consensus among policymakers that inflation remains effectively managed. Although the central bank hinted at potential adjustments to monetary policy in the coming months, a definite timeline for any rate cuts remained elusive.”
Gold Prices React to Strong US Economy: Insights by Sugandha Sachdeva
Sugandha Sachdeva further noted that gold prices responded to the strong performance of the US economy, which reported the addition of 216,000 jobs in December, surpassing expectations. The robust employment figure, coupled with a 4.1 percent annual increase in average hourly earnings (compared to the anticipated 3.9 percent), led investors to reassess their expectations for early-year rate cuts.
At the same time, a rebound in the dollar index, fueled by uncertainties regarding the Federal Reserve’s position on rate cuts, contributed to the downward pressure on gold prices. However, geopolitical uncertainties continue to linger, offering support to gold at lower levels.
Key Insights by Anuj Gupta: Navigating Gold Price Trends & Support Levels
Anuj Gupta, Head of Commodity & Currency at HDFC Securities, highlighted key levels to monitor for gold prices, stating, “Gold prices are currently trading within a range due to the lack of a clear timeline for a rate cut in the US, as indicated by the US Fed meeting minutes.
Despite market expectations for a rate cut already factored in, the post-minutes rally in gold prices was limited, and significant profit booking led to a decline below last week’s closing levels. Nevertheless, the spot gold price is holding above a critical support level at $2,010 per ounce, while the MCX gold rate is maintaining support in the range of ₹62,250 to ₹62,300 per 10 grams.”
Gold Price Forecast: Anuj Gupta & Sugandha Sachdeva Share Insights
Anuj Gupta from HDFC Securities indicated that the spot gold price is encountering a challenge around the $2,080 level, while the MCX gold rate is facing resistance in the range of ₹63,450 to ₹62,500. Gupta recommended gold investors to consider buying at the current MCX levels, as the existing support at ₹62,250 is expected to remain strong ahead of the release of US CPI data.
He emphasized the importance of staying alert to the US CPI data, scheduled for release next Thursday. A favorable outcome in the data might stimulate buying interest in the US dollar, resulting in additional selling pressure on precious metals. However, Gupta also noted that in the event of disappointing US CPI data, gold prices could turn bullish and surpass the current resistance at ₹63,500 per 10 grams.
Sugandha Sachdeva from WealthWave Insights highlighted that the short-term outlook for gold prices will be influenced by immediate triggers, with a specific focus on key events like US CPI data and the trajectory of the US dollar. She pointed out that the US dollar has shown resilience, particularly around the critical 100-mark.
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