Gold prices today have maintained their stability amidst hawkish rhetoric from various US Federal Reserve officials and the ongoing resilience of the US dollar index, fueled by stimulus anticipation ahead of the US presidential elections. The gold futures contract on the Multi Commodity Exchange (MCX) for April 2024 expiry closed at ₹62,303 per 10 gm level, while internationally, it settled at $2,024 per ounce.
Commodity market experts suggest that the recent dip in gold prices shouldn’t cause concern among investors, noting that the support level around ₹61,500 per 10 gm has held firm throughout the week. They emphasize the possibility of a single trigger propelling gold prices upward in the near term. Factors such as persistent geopolitical tensions in the Middle East and the US government’s revision of last year’s inflation figures hint at potential easing in the US Fed’s monetary policy in the short term.
Explaining the reasons behind gold’s sideways trading, Sugandha Sachdeva, Founder of WealthWave Insights, stated, “Gold prices experienced a moderate decline of 1.42 percent over the past week, owing to the resilience of the dollar index and hawkish rhetoric from various Federal Reserve officials. The comments made by these officials tempered expectations for an imminent rate cut by the US Fed, as they emphasized the need for concrete evidence of inflation moderation before considering monetary easing measures. Consequently, the US dollar strengthened, buoyed by robust labor market indicators such as the initial claims data, reinforcing the perception that the US central bank will maintain higher interest rates for an extended duration. This sentiment exerted downward pressure on gold prices.”
