Gold rate today, 24th February 2024: After losing for two straight weeks, gold prices finally logged a modest 0.75 percent gain in the week gone by. Gold futures contract on the Multi Commodity Exchange (MCX) for April 2024 expiry finished at ₹62,325 per 10 gm level on Friday. In the international market, spot gold price ended at 2,035 per ounce levels, logging an impressive 2.15 percent rise from its two-month low of ₹1,992 levels that it had touched at the end of the first fortnight of February.
According to commodity market experts, gold prices are finding support from the softening US dollar and the Middle East crisis. They said that the US Fed minutes released last week didn’t signal any timeline for interest rate cuts and re-iterated the challenge of achieving the target of a 2 percent inflation rate. Hence, gold prices are expected to remain sideways. However, they maintained that geopolitical tension and the US dollar rate would continue to dictate the yellow metal rally.
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What fueled the gold rush?
On triggers that fueled gold price rebound from a two-month low, Sugandha Sachdeva, Founder of WealthWave Insights said, “Gold prices experienced a period of consolidation, closing the week with a modest uptick of around 0.75 percent following two weeks of consecutive declines. Prices have managed to find support at ₹61,800 per 10 gm or $2,010 per ounce mark and edged higher amid some softening of the dollar index from a three-month peak. Additionally, ongoing geopolitical tensions in the Middle East contributed to gold’s allure as a safe haven asset.”
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Triggers for the gold price movement
On triggers that may dictate gold price movement in the near term, Anuj Gupta, Head — Commodity & Currency said, “After the release of US Fed minutes, the buzz for near-term rate cut has become a passe and hence the yellow metal is expected to find resistance at $2,045 to $2,050 per ounce range. MCX gold rate is expected to find resistance at ₹61,500 per 10 gm level whereas it is finding cushion at ₹61,500 level.”
“The US Fed’s stance, as reflected in the minutes of its recent meeting, signaled a reluctance towards early rate cuts. Concerns were voiced regarding the premature easing of rates, especially given the persistent challenges in achieving the targeted 2 percent inflation rate. Furthermore, remarks from a Fed official underscored the central bank’s cautious approach, citing the January CPI data as evidence of persisting inflationary pressures. These indications, coupled with lower-than-anticipated jobless claims data, prompted investors to recalibrate their expectations, dampening hopes for an imminent rate cut and consequently restraining upward momentum in gold prices,” said Sugandha Sachdeva.
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Anuj Gupta of HDFC Securities said that the Comex gold rate today has immediate support placed at $2,010 per ounce level while the crucial support can be assumed around $1,990 per ounce level.
“While gold navigates through a confluence of market dynamics, including geopolitical uncertainties and central bank policy stances, its resilience in the face of headwinds underscores its status as a coveted asset class,” Sugandha Sachdeva concluded.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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