Gold price today: MCX gold rate climbs 1.4% this week despite US Fed’s slower rate cut stance, sticky US inflation | Stock Market News

Gold price today: Despite the US Fed’s signalling rate cut at a slower pace amid sticky US inflation and a strong labour market, the MCX gold rate registered gains for the third week in a row. Gold futures contract on MCX for February 2025 expiry finished at ₹78,400 per 10 gm, logging around ₹1,080 per 10 gm or 1.40 per cent rise in one week. After finishing at the ₹78,400 mark, the precious yellow metal registered around 2.15 per cent gain in the YTD. In the international market, the spot gold price finished at $2,690 per ounce, while the COMEX gold price ended at $2,715 per troy ounce.

According to commodity market experts, gold prices today are bullish due to the weakness of the Indian National Rupee (INR) against the US dollar (USD) and global uncertainties surrounding the US President-elect Donald Trump’s swearing-in ceremony date. They said that the MCX gold rate today is in a broader range of ₹76,000 to ₹78,800, while the immediate short range of gold price today is ₹77,700 to 78,800 per 10 gm. They advised a buy-on-dips strategy for gold investors ahead of Donald Trump’s inauguration as the 47th US President. A decisive breakout above 78,800 may trigger a fresh bull trend in the precious yellow metal price.

Regarding the gold price rally, Sugandha Sachdeva, Founder of SS WealthStreet, said, “Gold extended its gains for the third consecutive week, climbing 1.4% at the domestic markets. This resilience comes despite the release of the Fed’s December meeting minutes, which signalled a preference for a slower pace of rate reductions in 2025 amid sticky inflation and a strong labour market in the US economy. Adding to the complexity, the US dollar index continued its rally, reaching a high of 109.96, typically a headwind for gold prices. Further, the crucial US Non-Farm Payrolls data reported stronger-than-expected job additions in December, bolstering the case for a prolonged pause in rate cuts by the Fed.”

Uncertainty ahead of Donald Trump’s oath date

Speaking on the reasons that fueled MCX gold rates despite the strong US dollar and US Fed not in a hurry to cut interest rates, Anuj Gupta, Head — Commodity & Currency at HDFC Securities, said, “Despite soaring US dollar against the major global currencies in the Forex market and US Fed signalling a slower pace of interest rate cut in December 2024 meeting, MCX gold rate surged for the third week in a row. This is because of the economic uncertainties surrounding Donald Trump’s oath date (20 January 2025) and the free fall of the INR. So, these domestic and international triggers can be attributed as reasons for the rise in the gold prices.”

“A month-on-month decline in average hourly earnings hinted at cooling inflationary pressures, further supporting Gold’s upward momentum. Significant uncertainty surrounds the imposition of tariffs on a broad range of imports under the incoming administration of President-elect Donald Trump, set to take office on January 20. This has amplified Gold’s safe-haven appeal, driving investor interest,” said Sugandha Sachdeva of SS WealthStreet.

Budget 2025 in focus

Pointing towards the budget 2025 buzz, Sugandha Sachdeva said, “Domestically, there are concerns that the Indian government might increase the import duty on Gold in the upcoming Union Budget to curb gold imports and address the trade deficit. Such a move could lead to price adjustments and potential divergence from international markets.”

Gold price outlook

Expecting the gold price rally to continue ahead of Donald Trump’s inauguration date, Anuj Gupta of HDFC Securities said, “On can maintain buy-on-dips strategy as the short-term outlook for the yellow metal looks positive. MCX’s gold rate has immediate support at ₹77,700 to ₹77,750, whereas it faces a hurdle in the ₹78,750 to ₹78,800 range. In other words, we can say that MCX gold rate is trading in the immediate short range of ₹77,700 to ₹78,800 per 10 gm.”

“MCX gold rate has established a solid support base around Rs.76,500-76000 per 10gms zone, with prices trending higher. While the overall outlook remains positive, the three-week rally suggests the possibility of a short-term correction, which could attract fresh buying interest. In the near term, Rs.78,800 per 10 gms is a crucial resistance level. A decisive breakout above this threshold could pave the way for further upside momentum. However, one should remain cautious of potential consolidation or pullbacks, which could present opportunities for accumulation,” Sugandha Sachdeva of SS WealthStreet concluded.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.