Gold rate today: Despite a buying buzz ahead of the Akshaya Tritiya 2024, hawkish US Fed talks on the interest rate continued to weigh on gold prices .
In the international market, COMEX gold is around $2,319 per troy ounce, whereas spot gold prices oscillate around $2,312 per ounce.
Anticipating a sideways movement in gold prices ahead of Akshaya Tritiya, Anuj Gupta, Head of Commodity & Currency at HDFC Securities, advised, "The current range for gold prices is ₹70,500 to ₹71,200 per 10 gm.
Any dip in gold price today should be viewed as a strategic buying opportunity, as demand for physical gold is expected to gain momentum on Akshaya Tritiya, falling on 10th May 2024.
Spot gold price has immediate support at $2,300 per ounce level, while it is facing resistance at $2,330 per ounce.
Gold rate today: Despite a buying buzz ahead of the Akshaya Tritiya 2024, hawkish US Fed talks on the interest rate continued to weigh on gold prices . The gold futures contract for June expiry opened lower at ₹71,050 per 10 gm mark on the Multi Commodity Exchange (MCX) and touched an intraday low of ₹71,034 within a few minutes of the opening bell. In the international market, COMEX gold is around $2,319 per troy ounce, whereas spot gold prices oscillate around $2,312 per ounce. According to commodity market experts, the current fall in gold prices can be attributed to the hawkish talks by the US Fed officials on interest rate cuts. Rising Treasury yields and the US dollar rates are also a reason for the drop in gold rates today .
Hawkish US Fed
Discussing the significant influence of the US Fed's hawkish stance on gold rates today, Praveen Singh, Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, stated, "The ongoing decline in gold prices can be attributed to the US Fed's hawkish comments, which are exerting pressure on commodities. The US Treasury yields surged following the auction of 10-year yields at a high yield of 4.483%. The ten-year US yields at 4.494% rose by 0.83%, leading to a 0.08% increase in the US Dollar, settling at 105.51 on Wednesday."
Anticipating a sideways movement in gold prices ahead of Akshaya Tritiya, Anuj Gupta, Head of Commodity & Currency at HDFC Securities, advised, "The current range for gold prices is ₹70,500 to ₹71,200 per 10 gm. A breakthrough of this resistance could push the yellow metal price to ₹71,800 per 10 gm on the MCX. Any dip in gold price today should be viewed as a strategic buying opportunity, as demand for physical gold is expected to gain momentum on Akshaya Tritiya, falling on 10th May 2024. Spot gold price has immediate support at $2,300 per ounce level, while it is facing resistance at $2,330 per ounce. A breach of this hurdle could propel spot gold price to $2,360 per ounce in the short term."
Iran-Israel conflict in focus
Anuj Gupta of HDFC Securities said one should remain vigilant about the latest Iran-Israel news. Any further escalation in the tension between the two nations may trigger fresh momentum in the bullion market. He said that tension in the Middle East subsided after the US paused a shipment of bombs to Israel over concerns about a potential military offensive on the city of Rafah.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
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