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July 18, 2024
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Gold price today: Rates move slightly up after an uptick in US inflation; what should be your strategy for MCX Gold?

“Gold prices were flat on Wednesday, after falling the most in a month in the previous session, as sticky US inflation raised concerns an interest rate cut by the Federal Reserve may be delayed beyond June,” reported Reuters.

Gold saw profit booking in the international market in the previous session as the US inflation report came slightly above market forecasts. 

The US Consumer Price Index (CPI) for February registered a 3.2 per cent annual increase. This was slightly over the market expectations of 3.1 per cent.

Also Read: US inflation rises to 3.2%, dampens hope of Fed’s interest-rate cut until June

The rise in inflation prints boosted the dollar index and triggered profit-taking in gold.

Apprehensions are rising that the US Fed may delay rate cuts beyond June considering inflation is not easing.

Experts believe the anticipation of a late rate cut could weigh on gold prices even though the yellow metal may be supported by geopolitical tensions and uncertainty on the macroeconomic front.

Meanwhile, MCX Gold traded for April 5 delivery traded 0.11 per cent higher at 65,550 per 10 grams around 10:50 am.

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What should be your strategy for MCX Gold today?

Experts expect gold and silver prices to see some volatility today amid fluctuations in the dollar index and potential further profit-taking.

Also Read: Why are gold prices rising globally and where are they headed in March? Explained

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold may find support at $2,142-2,128 with resistance at $2,174-2,188 in international markets while silver is expected to have support at $24-23.80 and resistance at $24.34-24.50.

In the domestic market, Kalantri believes gold may take support at 65,180-64,940 and resistance at 65,610-65,820. Silver is expected to find support at 73,340-72,880 and resistance at 74,340-74,880, said Kalantri.

Also Read: Gold loan NBFCs make hay while sun shines

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile in today’s session amid volatility in the dollar index. However, gold and silver could hold their key support levels of $2,122 and $23.66 per troy ounce respectively on a weekly closing basis.

As per Jain, gold has support at $2,154-2,142 and resistance at $2,178-2,192 per troy ounce. Silver has support at $24.20-23.88, while resistance is at $24.64-24.90 per troy ounce in today’s session.

On the MCX, gold has support at 65,300-65,050 and resistance at 65,650-65,880 while silver has support at 73,400-72,950 and resistance at 74,250-74,700, said Jain.

Jain suggests selling gold on the rise around 65,650 with a stop loss of 65,900 for the target of 65,200.

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.


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Published: 13 Mar 2024, 10:59 AM IST

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