Gold rate today: Gold prices gained ₹119 on Tuesday, trading close to a record high of ₹1,10,298 per 10 grams in the domestic futures market, supported by strong global trends as investors awaited a likely US Federal Reserve rate cut this week.
On the Multi Commodity Exchange (MCX), the actively traded October gold futures rose ₹119, or 0.10 per cent, to ₹1,10,298 per 10 grams, after having touched an all-time high of ₹1,10,330 in the previous session.
Likewise, the December contract climbed ₹109 to ₹1,11,346 per 10 grams on the MCX, following a fresh record of ₹1,11,350 per 10 grams hit on Monday.
Commodities market experts noted that gold prices continued their upward trend as traders anticipated a Fed rate cut in its September 17 policy decision, while also watching for indications of additional monetary easing later in the year.
In the international front, December gold futures climbed to a record high of $3,728.32 per ounce, supported by prospects of a more accommodative US monetary policy and continued strong demand for safe-haven assets amid worldwide economic uncertainties.
“Gold prices scaled a record peak, supported by a weaker dollar and US Yields ahead of the Federal Reserve’s policy meeting this week, where the central bank is widely expected to cut borrowing rates.
Dollar traded near a 2-1/2-month low against the euro; US Yields also slumped in yesterday’s session hovering around 4%. Market participants are awaiting Governor Powell’s decision and remarks in this week’s policy meeting and a 25bps rate cut is expected after a long pause. In this week’s policy meeting, along with Governor Powe’s statement, dot plot and economic forecasts will also be important to watch for. U.S. President Trump called for Fed Chair Powell to enact a “bigger” cut to benchmark interest rates via social media post,” said Manav Modi, Analyst – Precious Metal -Research, Motilal Oswal Financial Services Ltd.
Is it right time to buy or sell gold?
Darshan Desai, CEO – Aspect Bullion & Refinery suggested investors to consider a buying opportunity if the bullion witnesses any short-term dip in the near future.
“Gold prices surged to another record high as the US Dollar dropped to its lowest level in seven weeks. With markets largely expecting a rate cut from the Federal Reserve tomorrow, attention now turns to the size of the cut and Jerome Powell’s guidance on future policy moves. A smaller-than-expected cut or hawkish tone could disappoint investors. However, any short-term dip may present a buying opportunity, as lower prices could offer an attractive long-term entry point,” said Darshan Desai, CEO – Aspect Bullion & Refinery.
On the other hand, SimranJeet Singh Bhatia, Senior Research Analyst- Equity, Almondz Global, recommended investors to add gold in their portfolio.
“Gold should be a part of portfolio , as rate cut will lead to weaken the US dollar. Gold is priced in U.S. dollars, so a weaker dollar makes gold cheaper for investors using other currencies, increasing demand. A dollar currently trading at 97 from 52wk high of 117,” Bhatia said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
