Today’s gold rate: On the Multi Commodity Exchange (MCX), gold prices dropped below 58,000 per 10 gm due to fresh concerns about US Fed rate hikes following higher-than-anticipated US inflation figures. The yellow gold did, however, experience some buying activity at lower levels, recovering to a high of 58,018 per 10 gm and returning to the previous level of 58,000. The price of gold is now fluctuating on the global market at around $1,875 per ounce levels.
Similar to gold, silver opened higher today at 69,365 per kg levels and fell to an intraday low of 69,297 levels. The precious white metal, however, recovered from lower levels and reached an intraday high of 69,395 levels on the MCX.
Focus on US Inflation Data
Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors, highlighted the factors that prevented the price of gold and silver from rising further, stating that “Gold prices are likely to experience some pressure as higher than expected US CPI data for September led to a sharp rebound in the greenback while denting the appetite for the precious metal.” The US headline inflation rate increased by 3.7% in September, beating the forecasted annual increase of 3.6%, reviving bets that the Fed will maintain high-interest rates for a considerable amount of time.
focus is on the US Fed meeting
Anuj Gupta, Head of Commodity & Currency at HDFC Securities, pointed to the forthcoming November 2023 meeting and stated, “After higher-than-expected US CPI statistics, the anxiety of US Fed rate hike has become revived. There is talk of an interest rate increase at the US Fed meeting in November 2023.
Essential levels to observe
Gold prices are currently running into resistance at the significant price levels of $1,880 for an ounce and 58,350 for a kilogram in domestic markets, according to Sugandha Sachdeva of Acme Investment Advisors.
Sugandha stated, “A sustained move above the aforementioned resistance levels could nevertheless highlight gains in the precious metal.”
The prognosis for gold prices
Anuj Gupta of HDFC Securities recommended a “buy on dips” strategy for the prices of gold and silver, stating that “Gold and silver prices are expected to bounce back from its lows as ease in Israel Palestine conflict is still not visible and the war-may lead to putting pressure on equity, currency, bond, and other assets.”
