Gold Prices Today: Trading Flat but Poised for Upside Amid US Fed Rate Cut Buzz

As investors await the release of the US Fed minutes and speculate on a potential rate cut, gold prices today at the Multi Commodity Exchange (MCX) have remained relatively flat. On Tuesday morning, MCX gold opened at ₹71,530 per 10 grams and briefly touched an intraday high of ₹71,597. Despite this peak, gold prices are still approximately ₹3,000 short of their lifetime high of ₹74,732 per 10 grams. In the international arena, spot gold prices are trading around $2,500 per ounce.

Experts suggest that while the gold rate today appears stable, the overall trend remains positive. The buzz surrounding a possible US Fed rate cut has gained traction, with the Fed meter indicating an 82 percent probability of such an announcement during Fed Chairman Jerome Powell’s speech at the Jackson Hole Symposium on Friday. Analysts recommend that investors consider a buy-on-dips strategy while the spot gold price remains above $2,480 and the MCX gold rate stays above ₹71,000 per 10 grams.

Factors Influencing Gold Prices Today

Anuj Gupta, Head of Commodity & Currency at HDFC Securities, advises investors to take advantage of any market dips. He notes, “Gold prices have retraced from record highs in the international market, and the flat movement on the MCX should be viewed in this context. However, the overall trend remains bullish, as the US Fed rate cut buzz has intensified, with the Fed meter showing an 82 per cent chance of a rate cut announcement in Jerome Powell’s Jackson Hole speech.”

Gupta adds that the anticipation of a rate cut has placed pressure on the US dollar and Treasury yields. Consequently, investors are reallocating their assets to gold, equities, mutual funds, and other investment vehicles.

Gold Price Outlook

Regarding the gold price outlook, Jateen Trivedi, VP Research Analyst of Commodity & Currency at LKP Securities, comments, “The upcoming Fed meeting minutes will likely influence the gold price rally. Resistance is anticipated in the $2,500-$2,515 range, with support at $2,480-$2,470. Overall, the trend for gold remains positive as expectations of a September rate cut should provide support at lower levels.”

Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, highlights recent market movements, stating, “COMEX Gold prices began the week with modest gains, peaking at a record high of $2,549.90 before settling at $2,541.00. This increase was driven by safe-haven demand and a weaker dollar amidst concerns over the US economy’s resilience, geopolitical tensions, and comments from the Chicago Fed President that reignited recession fears. Investors are keenly awaiting the Fed’s interest rate decision, as policymakers have adopted a cautious stance.”

Chainwala also notes that China’s central bank has introduced new gold-import quotas, heightening speculation about increased buying. Geopolitical concerns, especially regarding the Middle East and a possible ceasefire between Israel and Hamas, may keep investors cautious. COMEX Gold prices are holding steady near their all-time highs as traders await Fed Chair Powell’s speech at the Jackson Hole Symposium, which could signal a policy shift next month.

Important Levels to Watch

For those considering a buy-on-dips strategy, Gupta suggests keeping an eye on key support levels. “The immediate support for MCX gold today is at ₹71,000, with crucial support at ₹70,500 per 10 grams. For spot gold, immediate support stands at $2,480, while crucial support is at $2,450 per ounce. The immediate targets for MCX gold are ₹72,000 and ₹72,800, while spot gold prices might reach $2,530 and $2,560 per ounce in the near term.”

With gold prices today trading near historical highs and significant market factors influencing its trajectory, investors should remain vigilant. The potential for a US Fed rate cut could further impact gold prices, making it crucial to monitor key support and resistance levels. 

Stay informed about the latest gold market trends and make strategic investment decisions by following updates on gold prices and Fed announcements. Keep an eye on upcoming economic events that could influence the gold market and adjust your investment strategy accordingly.