Gold rate today: Following the ceasefire buzz in the US-Iran war, easing inflation fears, and buzz for a US Fed rate cut, gold prices witnessed buying interest in Asian and Indian markets during the morning session today. The MCX gold rate today opened with an upside gap at ₹1,51,427 per 10 gm and touched an intraday high of ₹1,51,870, logging an intraday gain of nearly 0.50%.
Likewise, the COMEX gold price today saw buying interest in Asian markets during the morning session, reaching an intraday high of $4,751.26 per ounce. While gold prices climbed to this intraday high, the international market hit a two-week high.
Ceasefire buzz in the US-Iran war
On why the gold price is rising today, Anuj Gupta, a SEBI-registered market expert, said, “The US President Donald Trump has declared that the US military would vacate Iran in the next two to three weeks, as the US administration believes their goal of eliminating the country’s nuclear threat has been achieved.”
Connecting the US-Iran ceasefire with other triggers, Anuj Gupta said, “After the de-escalation in the US-Iran war, the market believes the crude oil prices would scale down, enabling the inflation fears to fade out. The market also believes that fading inflation fear may boost the US President’s morale to ask the new US Fed chief for a possible rate cut.” He said that pressure on the US dollar is also a reason for rise in the gold and silver rates today.
Gold price today: Key levels to watch
Expecting volatility in the gold and silver prices, Sugandha Sachdeva, Founder of SS WealthStreet, said, “Technically, international gold prices are seen supported near $4,170 per ounce, while resistance is placed around $4,850 per ounce. On the domestic front, prices are likely to find support near the ₹1,35,000-133500 zone, with a strong resistance zone seen around ₹1,57,600. A sustained break beyond this range will be required to establish a clear directional trend.”
Gold fell more than 11% in March in its steepest monthly fall since October 2008 due to rising expectations of hawkish monetary policy and as the dollar emerged as a safe-haven winner since the Iran war started on February 28.
Traders have almost completely priced out any chance of a U.S. Federal Reserve rate cut this year from about two cuts expected before the war. [FEDWATCH]
Gold tends to thrive in a low-interest-rate environment as it is a non-yielding asset.
“Should geopolitical tensions de-escalate further, then expectations for Fed easing could return. In such a scenario, real yields can ease, providing support for gold,” said Christopher Wong, a strategist at OCBC.
(With inputs from Reuters)
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