GOLD RATE TODAY BELOW ₹2600 FROM LIFETIME HIGH. SHOULD YOU BUY ON THIS DIP?

Gold rate today on the Multi Commodity Exchange (MCX) witnessed some buying interest during early morning deals. MCX gold rate today (June 2024 expiry) opened upside at ₹71,212 per 10 gm and went on to touch an intraday high of ₹71,457 per 10 gm within a few minutes of the commodity market's opening bell. However, the precious yellow is still nearly ₹2500 per 10 gm away from its lifetime high of ₹73,958 level that it touched on 12th April 2024. So, in nearly a fortnight, gold prices have corrected around ₹2500 per 10 gm on MCX. In the international market, spot gold price is around $2,335 per troy ounce. In the retail market, the gold rate today in Delhi is ₹72,500 per 10 gm.

US Fed meeting in focus

On why gold prices have fallen nearly ₹2500 per 10 gm against its lifetime high, Anuj Gupta, Vice President of Commodity & Currency at HDFC Securities said, "Gold prices are falling after US Fed chief Jerome Powell's latest statement on the interest rate cut when he said that the US Federal Reserve will not show any kind of urgency in initiating its rate cut policy. This has put doubt into the minds of investors as they were expecting a rate cut from the US Fed either in upcoming US Fed meeting beginning on 30th April 2024 or in June 2024." Anuj Gupta of HDFC Securities said that the market is discounting the gold prices after ease in the Iran-Israel conflict as well.

US Treasury yields under pressure

On relief rally in gold price today, Anuj Gupta said, "Gold prices are ascending today as the US Treasury market is under profit booking pressure. US 30-year bond yield has corrected to the tune of 0.35 percent whereas the US 10-year bond yield has fallen to the tune of 0.26 percent in the early morning session."

Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities said, "Gold prices found support near ₹70,700 in MCX and $2315 in Comex, leading to a positive outlook with recovery from ₹70,700 to ₹71,100. Market sentiment remains optimistic, with a focus on the upcoming US PCE Price Index data scheduled for Friday, April 26. This data release is anticipated to provide further clarity on the direction of gold prices."

Anuj Gupta of HDFC Securities said that the gold rate today on MCX is facing a hurdle at the ₹71,500 level. On breaching this level, the precious yellow metal may touch ₹72,000 per 10 gm level. So, gold investors should maintain a stop loss at the ₹71,000 level for the near-term target of ₹72,000 per 10 gm. In case, the gold price breaches below ₹71,000 on a closing basis, then we can expect the precious metal to touch ₹70,500 levels.

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 making any investment decisions.

2024-04-26T05:25:09Z dg43tfdfdgfd