Today’s Gold Rate: Gold Price Drops from Peak as Dollar Index Soars. Is it Time to Buy or Wait?

Gold rate today: After the rebound in the US dollar index due to the revision in the US GDP data, gold prices experienced some profit-booking during the weekend sessions. Spot gold price retreated from its all-time high of $2,531 per ounce and closed around $2,503 per ounce. On the Multi Commodity Exchange (MCX), gold rate ended with a slight weekly loss at ₹71,651 per 10 gm.

Commodity market experts attribute the pressure on Gold rates today to the resurgence in the US dollar rates following the slight revision in the US GDP data. They mentioned that the Personal Consumption Expenditures (PCE) price index showed a moderate increase of 0.2% month-over-month and 2.5% year-over-year in July, aligning with expectations. This signifies ongoing but manageable US inflation concerns. The experts highlighted that gold prices are currently facing a resistance level at ₹72,300, with a sturdy support level established at ₹71,200 per 10 gm. They advised investors to keep an eye on next week’s US job data as any positive results could alleviate US inflation concerns, consequently boosting gold prices.

Insight into the Retreat from Record Highs

Anuj Gupta, Head of Commodity & Currency at HDFC Securities, elaborated on the factors influencing gold rates today, stating, “Gold price movements are primarily determined by two key factors: US dollar rates and US inflation news. Last week, a minor adjustment in the US GDP data prompted increased buying interest in the US dollar, leading to a decline in gold prices. However, following the Jackson Hole symposium, US inflation has eased, with market expectations leaning towards a rate cut by the US Fed in the upcoming meeting.”

Sugandha Sachdeva, Founder of SS WealthStreet, discussed the gold price movements from the previous week, mentioning, “Gold price momentum had been positive, maintaining an upward trend until profit-taking caused marginal losses towards the end of the week, especially after reaching record highs of $2,531 per ounce in the global market. The US dollar index rebounding from a seven-month low also added pressure on gold prices in the domestic market, encountering resistance around the ₹72,300 per 10 gm threshold.”

She further added, “The highlight of the week was the revised US GDP data for the second quarter that led to a resurgence in the dollar. Additionally, the PCE price index recorded a modest increase in July, aligning with expectations. These factors support a probable 25 bps rate cut at the Fed’s forthcoming meeting. However, the resilience of the US economy and sustained inflation have diminished the chances of an aggressive rate cut, thus bolstering the dollar index.”

Key Levels to Monitor for Gold Price Today

Providing insights on critical levels for MCX gold rates, Sugandha Sachdeva highlighted, “In the short term, gold’s momentum appears subdued unless it surpasses key resistance levels. Support levels are anticipated at ₹71,200 per 10 gm and ₹70,200 per 10 gm. Investors may consider adding gold strategically post a price dip, as the long-term outlook remains positive. The upcoming US jobs report will offer crucial insights into the labour market’s condition post recent downward revisions, indicating a slowing labour market.”

According to Anuj Gupta of HDFC Securities, “Spot gold prices are fluctuating within the range of $2,480 to $2,530 per ounce, while MCX gold rates vary between ₹71,000 to ₹72,250 to ₹72,300. A sustained close above ₹72,300 could propel MCX gold rates to ₹73,500 per 10 gm, with spot gold prices touching $2,560 per ounce upon surpassing the immediate hurdle at $2,530 per ounce.”

Disclaimer: The views and recommendations above belong to individual analysts or broking firms and not Mint. It is advisable for investors to consult certified experts before making investment decisions.