Gold price dropped 1.4% last week as US Fed rhetoric remained hawkish. Opportunity for bottom fishing?
Gold rate today: On account of hawkish rhetoric from various US Fed officials and the resilience of the US dollar index on stimulus buzz ahead of the US presidential elections this year, gold prices continue to trade sideways for yet another week. In the week gone by, the gold futures contract on the Multi Commodity Exchange (MCX) for April 2024 expiry ended at ₹62,303 per 10 gm level whereas in the international market, the precious yellow metal finished at $2,024 per ounce.
According to commodity market experts, this decline in the gold price should not be a worry for the investors as support for the MCX gold rate today placed at the ₹61,500 level has remained sacrosanct for the entire week. This means a single trigger may fuel gold prices in the near term.
They said that geopolitical tension in the Middle East is persisting and the US government revising last year's inflation figures should be taken as a hint of ease in the US Fed's monetary policy in the short term. Also Read: Oil rises 1%, heads for weekly gain as Middle East conflict rages On triggers that pulled down gold prices last week, Sugandha Sachdeva, Founder of WealthWave Insights said, "Gold prices experienced a moderate decline of 1.42 percent over the past week, owing to the resilience of the dollar index and hawkish rhetoric from various Federal Reserve officials.
The comments made by these officials tempered expectations for an imminent rate cut by the US Fed, as they emphasized the need for concrete evidence of inflation moderation before considering monetary easing measures. Consequently, the US dollar strengthened, buoyed by robust labor market indicators such as the initial claims data, reinforcing the perception that the US central bank will
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