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Category: Gold News

MCX gold rate today: Gold price below ₹66,000 as focus shifts to US CPI data. What experts say on risk-reward set-up?

Gold rate today: Gold price on the Multi Commodity Exchange (MCX) is trading flat in the early morning session as investors are awaiting the release of the US CPI data this week. MCX gold rate today opened flat at 66,023 and went on to touch an intraday high of 66,049 per 10 gm level. However, the precious yellow metal soon came under selling pressure slipped below the 66,000 mark, and made an intraday low of 65,938 per 10 gm. According to commodity market experts, the disappointing US job data has put a dent in the US Fed rate cut buzz. They said that the focus has now shifted to the US CPI date that will be released on 12th March 2024.

US CPI data in focus

On why the gold rate today is trading flat, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “The US Fed rate cut buzz received a hit after the disappointing US job data last week. Now, investors are waiting for the US CPI inflation rate for February 2024, which will be released on Tuesday this week. Any positive outcome in the February US inflation data will be supportive of the gold price appreciation. However, in case the US CPI data becomes disappointing, then in that case, the US Fed will come under pressure to continue with higher interest rates. So, US CPI data will be the biggest trigger for gold price movement in the next two days.”

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Risk-reward ratio in gold

Anuj Gupta of HDFC Securities said that gold prices have ascended to an alarming level where the physical market has cut down their premium. “Gold rate today in Delhi’s retail bullion market is around 66,000 per 10 gm, which is in sync with the MCX gold rate. This is because physical gold sellers are currently enjoying a handsome premium on their buffer stock due to the recent gold price rally in the future market. This exercise is an indication that the physical market is not in a comfortable position, which is a signal that the risk-reward ratio has peaked out after the recent gold price rally.”

Advising gold investors to remain vigilant about the US CPI data news, Sugandha Sachdeva, Founder of SS WealthStreet (Formerly WealthWave Insights) said, “Focus of gold investors has shifted on the latest US inflation data, which will provide insights into the trajectory of US interest rates and could further influence gold prices. Overall, while short-term corrections are possible, the underlying factors driving gold demand remain intact, supporting a positive outlook for the precious metal.”

Gold rate today: Key levels to watch

On key levels regarding the gold rate today, Anuj Gupta said, “The MCx gold rate today has immediate support placed at 65,300 whereas it has crucial support placed at 64,500 per 10 gm level. On the higher side, gold price has hurdles placed at 67,000 and 68,000 levels. In the international market, the gold rate today is in the small $2,150 to $2,200 per ounce range while the spot gold price today is in the broader range of $2,120 to 2,210 per ounce. On breaching above the $2,202 level on a closing basis, spot gold price may ascend towards the $2,240 level.”

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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