Gold rate today
: Gold prices reached a new peak, hitting Rs 65,298 per 10 grams on the MCX on Thursday, marking an increase of over Rs 2,700 within the first week of March. This surge in the yellow metal’s value is driven by expectations of a June
interest rate cut
by the
US Federal Reserve
, boosting both
domestic and international markets
.
Chair Jerome Powell’s statement about the potential for the Central Bank to lower rates in the upcoming months lifted market spirits, leading to gold hitting a new peak of $2,152 in international markets on Wednesday.
ET quoted Anuj Gupta, Head of Commodity & Currency at HDFC Securities sayinf prices have surged by 5.24% on Comex and by Rs 2,700 or 4.34% per 10 grams on the MCX. He noted that the market is optimistic about potential interest rate cuts by the US Federal Reserve.
As of Wednesday, the
MCX gold
contract price has increased by 3.12% or Rs 1,975 on a year-to-date basis.
On Thursday, MCX Silver began with a decline after finishing positively on Wednesday. Around 9:30 am, it was trading at Rs 74,015 per kg, marking a decrease of Rs 123 or 0.17%. Despite this, silver futures have seen an increase of nearly Rs 2,859 or 4.01% in March, while showing a decline of 0.39% or Rs 292 year-to-date, as per the analysis by the commodity and currency expert.
The MCX Gold April contract closed at Rs 65,199 on Wednesday, marking a modest increase of Rs 21 or 0.03%. Similarly, May Silver futures settled at Rs 74,200, rising by Rs 62 or 0.08%. Although silver reached a daily peak of Rs 74,240 per kg, it remains distant from its all-time high of Rs 79,566.
Gold has risen due to the weakening of the dollar index (DXY), which has fallen below the 104 mark once again. Currently, it is trading at 103.80 against a basket of six major currencies, remaining relatively stable. Over the last five trading sessions, the dollar index has depreciated by 0.17%.
On Thursday’s morning trade, gold futures on the Comex remained steady at $2,158.50 per troy ounce, showing a marginal increase of $0.30 or 0.1%. Meanwhile, silver futures were hovering around $24.390 per troy ounce, slightly lower by $0.103 or 0.420%.
Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies, remarked that the recent surge in gold to a new record has surprised the market. This surge, driven by weak US economic data and banking concerns, resulted in a 5% increase in prices over four trading days. Despite no significant changes in expectations for Federal Reserve rate cuts, geopolitical tensions and strong demand, particularly from China, have provided solid support for gold. Furthermore, central bank purchases and consumer demand have strengthened gold, despite its traditional inverse relationship with bond yields.
Qureshi emphasised that an important aspect to monitor is the market’s expectation of the Federal Reserve’s timing for reducing borrowing costs. Currently, there is a 65% probability of a rate cut in June, according to Qureshi.
Qureshi noted that on the daily chart, the MCX April Gold contract is displaying a pattern of higher highs and higher lows, indicating a bullish trend. However, she cautioned about the Relative Strength Index (RSI), which is currently in the overbought territory. This suggests a possible pullback in prices.
The analyst from Anand Rathi identifies resistance levels at Rs 65,300-65,500 and support levels at Rs 64,500-64,300.
Gupta stated that the price of gold in major physical bullion markets such as Delhi, Ahmedabad, and other cities is Rs 66,000 per 10 grams, while the price of 1 kg of silver is Rs 75,500.
