Gold price dips ahead of Akshaya Tritiya on hawkish US Fed. Opportunity to buy?
Gold rate today: Despite a buying buzz ahead of the Akshaya Tritiya 2024, hawkish US Fed talks on the interest rate continued to weigh on gold prices. The gold futures contract for June expiry opened lower at ₹71,050 per 10 gm mark on the Multi Commodity Exchange (MCX) and touched an intraday low of ₹71,034 within a few minutes of the opening bell.
In the international market, COMEX gold is around $2,319 per troy ounce, whereas spot gold prices oscillate around $2,312 per ounce. According to commodity market experts, the current fall in gold prices can be attributed to the hawkish talks by the US Fed officials on interest rate cuts.
Rising Treasury yields and the US dollar rates are also a reason for the drop in gold rates today. Discussing the significant influence of the US Fed's hawkish stance on gold rates today, Praveen Singh, Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, stated, "The ongoing decline in gold prices can be attributed to the US Fed's hawkish comments, which are exerting pressure on commodities.
The US Treasury yields surged following the auction of 10-year yields at a high yield of 4.483%. The ten-year US yields at 4.494% rose by 0.83%, leading to a 0.08% increase in the US Dollar, settling at 105.51 on Wednesday." Anticipating a sideways movement in gold prices ahead of Akshaya Tritiya, Anuj Gupta, Head of Commodity & Currency at HDFC Securities, advised, "The current range for gold prices is ₹70,500 to ₹71,200 per 10 gm.
A breakthrough of this resistance could push the yellow metal price to ₹71,800 per 10 gm on the MCX. Any dip in gold price today should be viewed as a strategic buying opportunity, as demand for physical gold is expected to gain momentum on
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