Gold rate today: After an aggressive US Fed rate cut of 50 bps, gold price witnessed a sharp upside rally last week as the US dollar rates came under pressure after this US Fed meeting outcome. Spot gold price peaked at 2,625 per troy ounce before the market closed on Friday. On MCX, the gold rate finished at ₹74,014 per 10 gm. According to commodity market experts, the euphoric rally in the precious yellow metal may continue as the US Fed Chair Jerome Powell and other US Fed officials have signalled two more US Fed rate cuts in 2024. They advised gold investors to accumulate gold on every big dip as the MCX gold rate may test resistance at ₹74,500 and anticipated some profit-booking around these levels.
Triggers for gold price
On why gold prices surged after the US Fed meeting, Sugandha Sachdeva, Founder of SS WealthStreet, said, “The euphoric rally in gold continues, with prices soaring to new record highs of $2,625 per ounce in international markets toward the end of the week. This surge is largely driven by the start of a monetary easing cycle in the US after four years, with the Federal Reserve’s recent super-sized half-percentage-point rate cut renewing the appeal of gold. As US inflation approaches the Fed’s 2% target, the central bank has hinted at an additional 50 basis point rate cut by the end of 2024, further propelling gold’s upward momentum. Gold has been in an uptrend since Q4 2023, gaining over 27% year-to-date.