Gold price today: MCX gold rate hits record high on safe-haven demand, weak US dollar, US Fed rate cut buzz | Stock Market News
Source: Live Mint
Gold rate today: Following the dip in the US dollar rates after US President Donald Trump’s jibe for a US Fed rate cut ahead of the first monetary policy meeting on Wednesday next week, gold prices skyrocketed on Friday and touched a new peak in the domestic market. Spot gold price missed by a whisker to climb to a new peak during the Friday session. MCX gold rate continues to remain on an uptrend and reached a new lifetime high of ₹80,312 per 10 gm, whereas spot gold price touched an intraday high of $2,785.98 per ounce, missing to improve the existing record high of $2,790 per ounce.
According to commodity market experts, gold rates today are on an uptrend due to the economic uncertainty after the inauguration of Donald Trump as the 47th US President last week. They said that gold has emerged as a safe haven after the tariff war escalated over President Donald Trump’s proposed 25 per cent tariffs on imports from Mexico and Canada, set to take effect from February 1, 2025. They said that spot gold prices may soon climb to a new peak and hit $2,800 per ounce. They noted that the MCX gold rate today is facing a hurdle at the ₹80,500 level, and a decisive breakout above the ₹80,500 mark may force gold prices to around the ₹81,200 mark.
Dip in US dollar rate
On triggers that fueled gold rates across the world, Anuj Gupta, Head of Commodity & Currency at HDFC Securities, said, “After the US President Donald Trump’s jibe at Davos on the US Fed rate cut in upcoming monetary policy meeting on Wednesday next week, US dollar came under the sell-off pressure. The US dollar index crashed over half a per cent and closed near the 107 mark on Friday. This triggered demand for gold as a safe-have amid uncertainty over the US economic outlook, which received a further boost after escalating tariff war as 25 per cent tariff on the Mexican and Canadian imports is going to become effective from 1st February 2025.”
Escalation in tariff war
Pointing towards the rising tariff tension, Sugandha Sachdeva, Founder of SS WealthStreet, said, “Rising economic uncertainties have fueled the latest leg of gold’s rally. Concerns over President Donald Trump’s proposed 25% tariffs on imports from Mexico and Canada, which were set to take effect on February 1, have heightened the safe-haven demand for gold. These tariffs could disrupt global trade and contribute to inflationary pressures in the US economy.”
US Fed rate cut in focus
Suganda notes that Trump’s call for lower interest rates, expressed during his speech at the World Economic Forum in Davos, further fueled the gold price rally. His stance led to a sharp decline in the US dollar index to a 5-week low, providing a strong tailwind for the precious yellow metal.
Gold rate today: Important levels to watch
“In the international market, spot gold price has crucial support placed at $2,740 while it is facing resistance at the $2,790 per ounce mark, its current record high. On decisively breaching this hurdle, the yellow metal may soon touch the $2,800 per ounce mark,” said Anuj Gupta.
On the suggestion of short-term investors, Sugandha Sachdeva of SS Wealth said, “Technical setup indicates strength in the precious metal. Gold price today has surpassed the key resistance level of ₹79,200 per 10 gm, extending its move to test highs of ₹80,312 per 10 gm. However, there is a near-term resistance at ₹80,500 per 10 gm mark, and a breakout of the same could push the prices to ₹81,200 per 10 gm mark in the near term. However, if Gold fails to sustain itself above this level, we can see some profit booking setting in the metal, pushing it lower to retest its support level of ₹79,200 and ₹78,500 mark. Buying gold on dips in a phased manner could enhance your returns and provide a safety net to your portfolio.”
So, gold price action remains strong, decisively breaking past the key resistance of ₹79,200 per 10 gm and extending gains to ₹80,312 per 10 gm. However, near-term resistance is seen at ₹80,500 per 10 gm, and a breakout above this level could propel yellow metal prices toward ₹81,200 per 10 gm in the short term.
Gold price today: Long-term strategy
On the suggestion to long-term investors, Anuj Gupta of HDFC Securities said, “A long-term investor is advised to wait for the profit-booking. Any dip around ₹78,500 per 10 gm could be a good buying opportunity, and one should accumulate on every big dip until the MCX gold rate is quoted above ₹75,000 per 10 gm. We are expecting that MCX gold rate may touch ₹87,000 per 10 gm mark by Diwali 2025.”
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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