MCX gold rate: Just Rs 3000 away from life-time high. Should you buy?

Ahead of the release of US Fed minutes and US Fed rate cut buzz, gold price today at the Multi Commodity Exchange (MCX) opened flat and continued to trade flat in the early morning session on Tuesday.

The MCX gold rate today opened at Rs 71,530 per 10 gm and touched an intraday high of Rs  71,597 within a few minutes of the Opening Bell. While climbing to this intraday high, gold price on MCX was away by around Rs 3,000 from its lifetime high of Rs 74,732 per 10 gm. In the international market, spot gold prices are around $2,500 per ounce.

What experts advise

According to commodity market experts, the gold rate today is trading flat, but the overall bias is still positive. They said that the US Fed rate cut buzz has gained momentum as the Fed meter shows an 82 percent probability of a rate cut announcement in US Fed chairman Jerome Powell's speech at the Jackson Hole Symposium on Friday.

They advised gold investors to maintain a buy-on-dips strategy until the spot gold price is above $2,480 and the MCX gold rate is above Rs 71,000 per 10 gm.

Triggers for gold price today

Advising gold investors to go for bottom fishing, Anuj Gupta, Head of Commodity & Currency at HDFC Securities, said, "Gold prices have retraced in the international market from the record high, and this flat movement on the MCX should be seen from this angle. However, the overall trend is still bullish as buzz for a US Fed rate cut has further appreciated, and the Fed meter is showing over 82 percent chances of a rate cut announcement in the Jackson Hole speech of Jerome Powell."

The HDFC Securities expert said that the buzz about the US Fed rate cut has put the US dollar rate and US Treasury yields under pressure, and investors are switching money from these assets to other assets, including gold, equity, mutual funds, etc.Gold price outlook

Outlook for gold price

Asked about the outlook for gold price today, Jateen Trivedi, VP Research Analyst of Commodity & Currency at LKP Securities, said, "This week Fed's meeting minutes will give further direction to Gold price rally which can be facing resistance in the zone of 2500-2515 and with support at 2480-2470$ Overall trend is positive for Gold as September rate cut expectation shall keep prices supportive at lower levels."

Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said, "COMEX Gold prices started the week with modest gains, peaking at a record high of $2,549.90 before settling at $2,541.00. The uptick was driven by safe-haven demand and a weaker dollar amid concerns over the resilience of the US economy, geopolitical tensions, and recent comments from the Chicago Fed President that reignited recession fears. Investors are closely watching the Fed's upcoming interest rate decision, as policymakers have signalled a cautious stance."

Gold rate today: Important levels to watch

Advising a buy-on-dips strategy to gold investors, Anuj Gupta of HDFC Securities said, "MCX gold rate today has immediate support at Rs 71,000, whereas crucial support is now placed at Rs 70,500 per 10 gm. Spot gold price today has immediate support at $2,480, whereas crucial support for the yellow metal is $2,450 per ounce. The immediate target for the MCX gold rate today is Rs 72,000 and Rs 72,800, while in the international market, spot gold prices may touch $ 2,530 and $2,560 per ounce in the near term."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of dhanamonline.com. We advise investors to check with certified experts before taking any investment decisions.

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