Gold prices surged, supported by a decline in the U.S. dollar, as investors awaited upcoming data to assess inflation trends, crucial for understanding the Federal Reserve’s approach to interest rates, on Tuesday.
At 09:58 a.m. EDT (1358 GMT), spot gold climbed 0.5% to $2,182.77 per ounce after spiking by as much as 1.3% earlier in the day. Meanwhile, U.S. gold futures for April delivery increased by 0.3% to reach $2,183.00.
The weakening of the dollar index by 0.1% contributed to this rise, rendering gold more affordable for international purchasers.
Also read: Gold and silver prices Today on 26-03-2024: Check latest rates in your city
The attention of the market is currently centered on the upcoming release of the U.S. Core Personal Consumption Expenditure Price Index data [PCE], scheduled for Friday. Market response to this data might be delayed until next week due to the Good Friday holiday.
Meanwhile, non-yielding bullion reached a historic peak of $2,222.39 last week following indications from Fed policymakers that they anticipate a reduction in rates by three-quarters of a percentage point by the end of 2024.
Back home, the Multi Commodity Exchange (MCX) witnessed a notable in active trading in precious metal with a focus on gold futures contracts set to expire on April 5, 2024, valued at ₹65,961 per 10 grams.
“Gold traded higher by 300rs around 66300 in MCX as Comex gold found support near 2170$ and rallied to 2195$ with backed up from the FED’s dovish statements the gold prices are broadly in positive trend but with resistance been seen at 2200-2205$ zones for the week. US GDP number son Thursday & Core PCE price index on Friday will be tracked keenly as they provided important impetus on FED’s watch tool,” said Jateen Trivedi, VP Research Analyst, LKP Securities.
Also read: Gold price jumps 6% this month. Should you buy as MCX gold rate dips ₹1000 from record high?
Analysts expect the gold prices to remain rangebound till prices are holding above support at ₹65,440/ 65,150.
“Gold is seen stuck in a range as we look ahead to more economic data and the central bank action on the interest rates, some caution is seen in the market ahead of the U.S. GDP data on Thursday and PCE & core-PCE (Fed preferred inflation indicator) on Friday. However, rising consensus for a rate cut in June by the BoE, ECB and Fed in the June meeting is seen supportive to the bullion,” said Pranav Mer, VP – Research (Commodity & Currency) BlinkX and JM Financial.
Silver experienced a 0.4% decline, reaching $24.57, platinum saw a 0.2% increase, reaching $904.62, and palladium dropped by 0.2%, hitting $1,002.41.
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Published: 26 Mar 2024, 10:01 PM IST