Gold price dips ₹3300 from record high. Should you buy as US non-farm payroll data fails to beat estimates?
Gold rate today: Following the ease in the Iran-Israel conflict and a dent to the US Fed rate cut buzz in the near term, gold price declined for the second straight week. Gold future contract for June 2024 expiry on the MCX finished at ₹70,677 per 10 gm, logging a weekly loss of ₹809 per 10 gm against the previous Friday's close of ₹71,486 per 10 gm. However, if we compare MCX's gold rate today with its record high of ₹73,958, which climbed on 12th April 2024, the gold price today is around ₹3300 per 10 gm lower than its record high.
Spot gold price ended on Friday at $2,301 per ounce, logging a weekly loss of around $48 per ounce against its previous Friday close of $2,349. After ending at the $2,301 level, the spot gold price corrected around $148 lower from its lifetime high of $2,448.80 per ounce. COMEX gold price finished at $2,310 per troy ounce level.
On reasons that have pulled down gold prices from record higher levels, Anuj Gupta, Head of Commodity & Currency at HDFC Securities, said, "Gold prices declined on rising fear that the US Fed may take longer to cut interest rates due to persisting inflation risk. Data on Thursday showed labour costs surged the most in a year, which put extra pressure on gold prices. Additionally, the safe haven premium continues to erode in gold after a possible ceasefire between Israel and Hamas, weighing on gold price." Praveen Singh, an Associate VP specializing in Fundamental Currencies & Commodities at Sharekhan by BNP Paribas, provided a detailed analysis.
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