Gold rate today: Gold prices on Multi Commodity Exchange (MCX) rebounded from a one-month low on Thursday, 30 April, driven by value buying after the US Federal Reserve kept interest rates unchanged on Wednesday.
MCX gold June futures rose 1.57% % to ₹1,51,350 per 10 grams, as of around 2:40 pm.
Meanwhile, on the international front, spot gold rose 1% to $4,588.09 per ounce, rebounding after hitting its lowest level since March 31 in the previous session. Meanwhile, US gold futures for June delivery gained 0.4% to $4,578.10.
Despite the uptick supported by dip-buying, gold was headed for a second consecutive monthly decline, as persistently high oil prices continued to fuel worries about inflation and the likelihood of interest rates staying elevated for longer.
What’s driving gold prices today?
Gold prices witnessed an upward movement supported by buying on dips and ongoing geopolitical tensions, though expectations of elevated interest rates are capping significant gains, according to Gaurav Garg, Research Analyst at Lemonn Markets Desk.
On April 29, the US Federal Reserve kept the federal funds rate unchanged at 3.5%–3.75% for the third straight policy meeting, highlighting rising inflation risks driven by higher energy prices amid the West Asian conflict.
“The meetings of the US Federal Reserve are always a focal point for the gold market. While causing some volatility towards the end of Wednesday’s trading session, prices did not react much to a widely expected decision to leave interest rates unchanged. This might also be reflecting the realisation that external factors – the Iran war, its impact on energy prices and inflation – could be determining the path of US monetary policy. In this regard, the established short-term pattern holds,” said Carsten Menke, Head Next Generation Research, Julius Baer.
Fed Chair Jerome Powell struck a cautious but largely expected tone, which had little impact on market sentiment. US equities, including the S&P 500 and Nasdaq, ended nearly flat on Wednesday, while most Asian markets closed in the red.
Meanwhile, the US dollar and 10-year Treasury yields rose, largely tracking the sharp increase in crude oil prices. The benchmark US 10-year yield climbed 0.25% to 4.43%, alongside a gain in the dollar index.
Oil prices surged amid reports of renewed escalation in the US-Iran conflict, with Brent crude trading above $120 per barrel — a level last seen in June 2022.
What’s gold price outlook in the near-term?
Renisha Chainani, Head, Research at Augmont, believes that Gold held near $4,550, at one-month lows, as rising energy costs fueled inflation concerns and reinforced expectations of further central bank tightening.
“Gold has reached its target level of $4,550 (around ₹1,48,000), with the next downside support placed at $4,450 (approximately ₹1,45,000),” Chainani said.
On the technical outlook, Ponmudi R, CEO of Enrich Money, said MCX Gold opened with a slight gap up and is trading near the ₹1,49,500 zone, attempting a modest recovery after a sharp decline from recent highs near ₹1,51,500.
“Price action continues to reflect underlying selling pressure, with the pair struggling to reclaim strength above key levels. Immediate resistance stands at ₹1,50,000; a sustained move above this level could ease near-term bearish pressure toward the ₹1,51,000– ₹1,51,500 zone. On the downside, a break below ₹1,49,000 could trigger extended weakness toward ₹1,48,600– ₹1,48,000, with ₹1,47,000 acting as a deeper floor. The near-term bias remains bearish-to-cautious, weighed down by dollar demand and evolving geopolitical developments,” Ponmudi 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.
