Gold prices on the Multi Commodity Exchange (MCX) surged to a record high of ₹64,575 per 10 grams on Monday, preceding the anticipated testimony of US Fed Chief Jerome Powell before the US Senate this week. However, MCX gold rates experienced some downward pressure during morning trading today. The gold futures contract for April 2024 expiry opened lower at ₹64,331 per 10 grams, marking its intraday low as well. Nonetheless, buying interest at lower levels pushed the gold rate to an intraday high of ₹64,388 per 10 grams. Meanwhile, in the international market, spot gold hovered around the $2,113 per ounce mark.
Market experts attribute the upward movement in gold prices to the looming uncertainty surrounding Powell’s testimony, coupled with the anticipation of disappointing US economic data, including the non-farm payroll data expected later this week. Despite hints of a hawkish stance from some US Fed officials, gold prices remain buoyant as investors brace for potentially adverse US data.
Anuj Gupta, Head of Commodity & Currency at HDFC Securities, noted that profit-booking in currency and bond markets, driven by concerns over the forthcoming US economic indicators, supported the surge in gold prices.
Ravindra Rao, Head of Commodity Research at Kotak Securities, highlighted that weak US economic data from the previous week heightened expectations of rate cuts by the Federal Reserve. Moreover, recent statements from Fed Governor Waller regarding the Fed’s holdings also influenced market sentiment.
Key levels to monitor for gold prices, according to Anuj Gupta, include immediate support at ₹64,000 and crucial support at ₹63,500 per 10 grams. Resistance is seen at ₹64,800, with a potential upside target of ₹65,300 per 10 grams. In the international market, spot gold prices range between $2,100 and $2,030, with the upper resistance level at $2,150 and support at $2,080 per ounce.
Disclaimer: The opinions and recommendations provided by analysts and experts are their own, and investors are advised to consult certified experts before making investment decisions.
