Gold price jumps ahead of US GDP data release, silver rate rebounds after retracing from record high

Gold price jumps ahead of US GDP data release, silver rate rebounds after retracing from record high/Senco Gold Lt Website

Dil Bar Irshad | May 29, 2024 | 03:41 PM IST | Breaking News | Follow on Google News

Gold price jumps ahead of US GDP data release, silver rate rebounds after retracing from record high

Gold price jumps ahead of US GDP data release, silver rate rebounds after retracing from record high

Mint

Gold rate today witnessed strong buying in the early morning session. Gold price today opened downside on the Multi Commodity Exchange (MCX) and touched an intraday high of ₹72,320 per 10 gm mark. Today, COMEX gold prices oscillate around $2,358 per troy ounce in the international market. This trend is in line with the recent upward movement in gold prices. Likewise, the silver rate today bounced back strongly after retracing from its lifetime high of ₹96,220 per kg mark. According to commodity market experts, gold and silver prices are ascending due to weakness in the US dollar rate. They said that the US GDP and core PCE data are coming on Thursday. They said the market expects flat data, which is positive for the bullion market.

Triggers for gold price rally

On reasons fueling gold prices today, Anuj Gupta, Head of Commodity & Currency at HDFC Securities, said, “Gold and silver prices are appreciating due to the weak US dollar. The US dollar index has come below the 105 mark, lending support to lower prices of gold and silver at lower levels. Apart from this, US GDP data is expected on Thursday. The market expects flat US GDP data on Thursday, which may spark buzz about the US Fed rate cut. The core PCE data is also expected flat on Thursday.”

Pointing towards the speculation of a US Fed rate cut, Kaynat Chainwala, Senior Manager of Commodity Research at Kotak Securities, said, “On Tuesday, Federal Reserve Bank of Minneapolis President Neel Kashkari said the US central bank’s policy stance is restrictive, but policymakers haven’t entirely ruled out additional interest-rate increases. Now the focus is on the PCE price index data, which is expected to rise 0.2% m/m in April, the smallest advance this year. This has sparked a ‘US Fed rate cut buzz ‘, indicating the market’s anticipation of a potential interest rate cut by the Federal Reserve, which could impact gold and silver prices.”

Gold rate today: Important levels

Regarding important levels for the gold price today, Anuj Gupta of HDFC Securities said, “MCX gold rate today has support placed at ₹71,600, whereas the precious yellow metal is facing resistance at ₹72,900 per 10 gm mark. In the international market, spot gold price today has support placed at $2,340 per ounce, whereas it is facing a hurdle at $2,370. On breaching this resistance, spot gold price may soon reachthe $2,400 per troy ounce mark.”

Dil Bar Irshad

Dil Bar Irshad is a seasoned journalist, hails from Jammu Kashmir's Doda, covers political, social, business stories, index stories.