Gold Price Rises Ahead of US Inflation Data
The domestic futures market saw a rise in gold prices on Thursday morning, driven by anticipation for the upcoming US inflation data, which will provide insights into the US Federal Reserve’s monetary policy stance.
US Inflation Data Influence
The US Consumer Price Index (CPI) figures for September are expected today, with Producer Price Index (PPI) data following on Friday, shaping expectations for further rate cuts by the US Fed in the coming months. Geopolitical tensions and expectations of monetary easing are two key factors supporting gold prices.
Insight: Impact of US Macroeconomic Data
Recent US macro data have tempered hopes for an aggressive rate cut by the Fed, with markets now indicating an 80 percent chance of a 25-basis-point rate cut in November. The minutes from the September Fed meeting revealed a majority of officials supported an initial 50 bps rate cut, but emphasized that future decisions would depend on data.
Experts’ Projections for Gold Prices
Analysts are positive about gold’s outlook, citing ongoing tensions in the Middle East and the Fed’s monetary easing approach as driving factors. Gold typically performs well under low interest rates and uncertain economic and geopolitical conditions.
Expert Strategies for MCX Gold
Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold prices to fluctuate ahead of the US inflation data, mentioning that the dollar’s movement and news regarding tensions between Israel and Iran will also impact gold prices. On the MCX, Jain suggests support levels for both gold and silver, along with resistance levels for today’s trading session.
Additional Expert Insights
Rahul Kalantri, VP of commodities at Mehta Equities, provides his analysis, highlighting support and resistance levels for both gold and silver in global markets. He also offers support and resistance levels for gold priced in INR, along with a trading range outlook endorsed by experts at brokerage firm SMC Global Securities.
Considerations for Investors
Investors are advised to consult certified experts before making any investment decisions, as the views and recommendations expressed above are those of individual analysts, experts, and brokerage firms, not Mint.
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