Gold price today: MCX gold rate retraces ₹2900 from record high. Buy or wait for more correction? | Stock Market News

Gold rate today: Following the cautious tone of the US Fed chairman Jerome Powell on an interest rate cut that strengthened the US dollar, gold prices logged a decline in the international market for the second straight week. However, gold prices registered marginal gain in the domestic market despite the Indian National Rupee (INR) hitting a record low. Thanks to the rise in demand for physical gold due to the wedding season. MCX gold rate for the February 2024 contract finished at ₹76,655 per 10 gm, whereas spot gold price ended at $2,633.20 per troy ounce.

According to commodity market experts, rising US dollar rates as Jerome Powell signalled a cautious approach to interest rate cuts are putting pressure on gold rates today. In contrast, geopolitical tension in South Korea and the Russia-Ukraine war support the yellow metal prices. They said that the long-term view for gold is positive, but in the near term, the precious yellow metal may trade sideways from ₹75,800 to ₹77,500 in the domestic market, whereas it may remain in the $2,620 to 2,660 per ounce range in the international market.

US Fed rate cut in focus

Speaking on the reasons that dragged gold prices last week, Sugandha Sachdeva, Founder of SS WealthStreet, said, “Gold prices continued to show sluggish performance, declining for the second consecutive week in the international markets while logging marginal gains at the domestic markets, aided by a weakening rupee, which hit a record low of 84.77. Despite strength in the dollar index exerting pressure, rising geopolitical tensions in South Korea and the ongoing Russia-Ukraine conflict supported safe-haven demand.”

“The key event of the week was Fed Chair Powell’s speech, where the central bank struck a cautious tone on rate cuts. While Powell didn’t rule out further easing at the December 17-18 meeting, he emphasized the strength of the US economy, supported by robust data. As per the latest data, US Non-farm payrolls surged by 227K in November, well above the 212K consensus, with an additional 56K upward revision for previous months. Average hourly earnings grew 0.4% MoM, surpassing expectations, while the unemployment rate ticked up to 4.2%, in line with forecasts but slightly higher than October’s 4.1%,” the SS WealthStreet expert said.

The US Fed meeting is scheduled from 17th to 18th December 2024.

Sugandha Sachdeva said that gold faces headwinds from strong US labour market data, a cautious Fed stance, and the continued rally in Bitcoin, which is diverting investor interest. However, geopolitical tensions and demand for safe-haven assets provide a balancing act.

Gold rate today: Important levels to watch

Unveiling strategy for gold investors for the short term, Anuj Gupta, Head — Commodity & Currency at HDFC Securities, said, “Gold prices are expected to remain sideways in the near-term. Spot gold may trade between $2,620 and $2,660 per troy ounce, whereas the MCX gold rate will likely trade between ₹75,800 and ₹77,500 per 10 gm. We can maintain a sell-on-rise strategy ahead of the US Fed meeting this month.” He said that gold prices in the domestic market are getting support at lower levels due to the rising demand for physical gold due to the wedding season.

Highlighting the broader range for gold prices in the domestic and international market, Sugandha Sachdeva said, “Technical perspective indicates that the precious metal is in a consolidation mode after a year of strong gains. Immediate resistance is seen at ₹78,800 per 10gm mark (or $2,650 per ounce), with key support at ₹75,500 per 10gm level (or $2,600 per ounce). A convincing breach below the mentioned support could trigger further downside, while an upward breakout would shift the bias to positive.”

“While the long-term trend for gold remains constructive, near-term consolidation and pressure are likely, as markets weigh geopolitical risks against a strong US economy and a cautious Fed. Investors should monitor key technical levels and other global cues,” Sugandha concluded.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.