Gold Price Today: Gold price on MCX retreated by ₹2900 from record high. Buy or wait for more correction?

Gold price today: The US dollar strengthened after US Fed Chairman Jerome Powell’s cautious stance on interest rate cuts, gold prices declined for the second consecutive week in the international market. However, gold prices Despite the Indian National Rupee (INR) hitting a record low, the domestic market registered marginal gains. The demand for physical gold increased thanks to the wedding season. mcx gold rate Contract expires in February 2024 76,655 per 10 grams, while spot gold prices ended at $2,633.20 per troy ounce.

according to item market According to experts, the rising US dollar is putting pressure on gold rates today due to Jerome Powell’s signal to adopt a cautious approach towards cutting interest rates. Conversely, geopolitical tensions in South Korea and the Russia-Ukraine war support the yellow metal prices. He said the long-term outlook for gold is positive, but in the near term, the precious yellow metal may trade sideways. from 75,800 77,500 in the domestic market, while in the international market it can remain between 2,620 to 2,660 dollars per ounce.

US Fed rate cut in focus

Speaking on the reasons behind the fall in gold prices last week, Sugandha Sachdeva, Founder, SS WealthStreet, said, “Gold prices continued to underperform, with international markets falling for the second consecutive week, while domestic markets registered marginal gains. ” “Despite strength in the dollar index, the rupee weakened to a low of 84.77, supported by safe-haven demand amid rising geopolitical tensions in South Korea and the ongoing Russia-Ukraine conflict.”

“The main event of the week was Fed Chairman Powell’s speech, where the central bank took a cautious stance on rate cuts. While Powell did not rule out further cuts at the December 17-18 meeting, he emphasized the strength of the US economy. Latest According to the data, US non-farm payrolls increased by 227K in November, well above the consensus of 212K, an increase of an additional 56K for the previous months SS. The unemployment rate rose 0.4% MOM, ahead of expectations, while the unemployment rate rose to 4.2%, in line with forecasts but slightly higher than October’s 4.1%, the WealthStreet expert said.

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

Sugandha Sachdeva said gold is facing headwinds from strong US labor market data, cautious Fed stance and the ongoing rally in Bitcoin, which is reducing investor interest. However, geopolitical tensions and demand for safe-haven assets provide a balance.

Gold price today: Important levels to watch

Revealing the strategy for gold investors for the short term, Anuj Gupta, Head of Commodity and Currency at HDFC Securities said, “Gold prices are expected to remain sideways in the near term. Spot gold is between $2,620 and $2,660 per troy. “Can trade between ounces.” While gold rates on MCX are likely to trade between 75,800 more ₹77,500 per 10 grams. We may maintain the selling strategy ahead of the US Fed meeting this month.” He said gold prices in the domestic market are being supported at lower levels due to increased demand for physical gold due to the wedding season.

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

Sugandha concluded, “While the long-term trend for gold remains constructive, there is potential for consolidation and pressure in the near term, as markets face geopolitical risks against a strong US economy and a cautious Fed. “Technical levels and other global cues should be monitored.” ,

Disclaimer: The views and recommendations given 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 decision.