Gold rate today nudges higher as investors await US data for US Fed rate cut cues. US inflation in focus | Stock Market News
Source: Live Mint
Gold rate today: The yellow metal witnessed some buying interest in the early morning session on Thursday despite investors waiting for the US data to get a clear picture about the US Fed rate cut and the US economy. MCX gold rate (February 2025 contract) today opened upside at ₹77,000 per 10 gm and touched an intraday high of ₹77,074 within a few minutes of the Opening Bell. In the international market, spot gold price is oscillating around $2,632 per troy ounce.
According to commodity market observers, today’s gold rate witnessed some buying during the Opening Bell after the profit-booking trigger in the FOREX market. This weakness in the US dollar rate is the major reason for gold’s becoming more affordable in the current market system.
Gold price outlook
Expecting the sideways trend to continue in the MCX gold rate movement, Kyle Rodda, financial market analyst at Capital.com, said, “Gold seems to be consolidating in a tight range, which often signals a market poised for a breakout. I suspect that breakout will be to the upside.”
Rodda said gold will likely remain bullish (in 2025), driven by geopolitical risks and expectations of rising government debt due to a deep fiscal deficit under Trump’s administration. This is despite potential challenges from slower Fed rate cuts and US dollar strength.
US Fed rate cut in focus
“Gold price rise on Thursday can be attributed to profit-booking trigger in the US dollar rates. Investors are awaiting the slew of US data that will give a clear picture about the US economy and a certain conviction about the US Fed rate cut in 2025,” said Anuj Gupta, Head of Commodity & Currency at HDFC Securities, adding, “Chances of the US Fed rate cut are looking weak after the December 2024 US Fed meeting as the US inflation still exceeds 2 per cent. So, these data are expected to clarify whether the rate cut will be implemented in the next US Fed meeting or will take place later.”
According to the CME’s FedWatch Tool, markets are pricing with just an 11.2 per cent chance of a rate cut in January.
Meanwhile, traders anticipate the Fed will adopt a slow and cautious approach to further rate cuts in 2025 as inflation continues to exceed its 2 per cent target.
(With inputs from Reuters)
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.
