Gold price dips for second straight week on higher US Fed rate buzz. Opportunity to buy?

livemint.com:

Gold rate today: On account of the higher-than-expected US CPI data, gold price in the international market touched a two-month low of around $1,992 per ounce level. However, the yellow metal witnessed some value buying in the international market, which enabled the precious bullion metal to regain some of its lost ground in the last two weeks. However, this relief rally was not enough to pare the entire losses, and gold future contract on the multi Commodity Exchange (MCX) for April 2024 expiry ended lower for the second week in a row.

According to commodity market experts, gold prices came under pressure in the week gone by after the release of higher-than-expected US CPI data. This created a buzz in the market that the US Fed is not going to reduce interest rates in the near term as the inflation concern is still around. Also Read: Sovereign Gold Bond Scheme 2023-24: Top 5 benefits you may like to know After this higher US Fed rate buzz, US dollar rates started rising and touched a three-month high.

However, after the release of softer-than-expected US retail sales data, the US dollar rate retraced, which enabled some value buying in the yellow metal. Weak economic data from the UK and Japan also fueled bottom fishing in the precious bullion metals. Speaking on the reasons that have put gold prices under pressure, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, "Gold prices came under pressure and touched two-month low after the release of higher-than-expected US CPI data.