Gold rate today: Amid buzz of an interest rate cut by the US Fed and a falling rate of the US dollar, gold and silver prices have rebounded from lower levels and registered more than a one percent increase in the past week. For the week, MCX gold rate ended 1.07 percent higher at ₹61,370 per 10 gm levels while MCX silver index ended 1.02 percent higher at ₹73,915 per kg levels. After finishing at ₹61,370 levels, MCX gold rate is only ₹544 per 10 g away from its lifetime maximum of ₹61,914 per 10 gm, which the precious metal climbed
According to commodity experts, the outlook for gold and silver is positive as the US dollar continues to lose luster. They said that US dollar index closed below 103.50 levels and it may go down to 100 levels after it breaks its immediate support placed at 103 levels. Experts advised investors to maintain their position and predicted a fresh high for MCX gold rate after the precious metal breaks its immediate hurdle set at $2,010 levels in international market.
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Triggers for gold price rally
Speaking about the recent gold price rally, market expert Sugandha Sachdeva said, “After testing record highs in the previous week, gold prices experienced some profit early in the previous week, only to witness renewed buying interest at lower levels as the precious metal jumped higher while the second consecutive week, gaining by 1.07 percent. Silver also marked an increase and closed 1.02 percent higher.”
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For reasons that encouraged gold and silver prices, Sugandha Sachdeva said, “The focus of the week centered on the publication of the US Federal Reserve’s minutes of the previous meeting, revealing a tendency to maintain higher interest rates for an extended period to counter inflation. However , amid cooling inflation and somewhat lackluster economic data, speculation has grown that the U.S. may end its rate hike program and possibly cut borrowing costs by the middle of next year. Furthermore, the Fed is expected to keep rates steady at its December meeting . led to selling pressure on the greenback, contributing to the upward trajectory in both precious metals.”
Important levels to watch
Advising gold and silver investors to maintain the strategy of buying dips, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “Gold rate today is in $1,980 to $2,010 per ounce. Breaching the current hurdle, it can go up to $ 2,050. and $ 2,070 per ounce levels in the short to medium term. On MCX, gold rate today is around ₹61,370 and it can go up to ₹61,700 and ₹62,400 per 10 g levels in short to medium term. So, those who have a position in gold are advised to hold their position by maintaining a stop loss at ₹60,800 per 10 g levels. Fresh investors can also buy gold around ₹61,250 per 10 g levels keeping stop loss at ₹60,800 per 10 g levels.
Stock Market Holiday: BSE, NSE closed on Monday for Guru Nanak Jayanti
Anuj Guipta HDFC Securities claimed that silver rate today is in $23.50 to $25 per ounce. On MCX, the precious white metal is in ₹72,000 to ₹75,000 per kg range. About a breakup ₹75,000 resistance, silver price can go up to ₹78,000 in the short to medium term.
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On triggers that may dictate gold and silver prices in the near term, Sugandha Sachdeva said, “Going forward next week, market participants will be closely monitoring the US PCE Price Index figures for October, the GDP revision for Q3 and the speech by the Chair of Fed. These factors are poised to affect the direction of gold prices.”
Disclaimer: The views and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decision.
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Updated: 25 Nov 2023, 07:24 IST