Gold price hits two month low on soaring US dollar rates. Buy or wait for more correction?
Gold rate today: Despite risk prevailing in the global financial market, gold failed to emerge as 'investors' haven' and nosedived to two month low. Spot gold price even breached its crucial support of $1,880 per ounce levels and ended at $1,848 levels on Friday.
Gold future contract for October 2023 expiry on Multi Commodity Exchange (MCX) ended at ₹57,096 per 10 gm levels. According to commodity market experts, relentless surge in the US dollar rates has put pressure on the precious metal.
They said that international gold price has now major support at $1,810 to $1,800 per ounce levels whereas on MCX, immediate support for the precious metal is at ₹57,000 whereas major support has now shifted towards ₹56,100 per 10 gm zone. Highlighting the reason for falling gold prices, Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors said, "A relentless surge in the dollar index towards a 10-month high, driven by growing concerns over persistently high interest rates in the US, exerted downward pressure on gold prices.
Prices even pierced the critical support level of $1,880 per ounce and drifted lower. Surprisingly, gold failed to attract safe-haven demand even amidst a climate of risk aversion prevailing in the financial markets." However, Sugandha said that towards the week's conclusion, there was a brief resurgence in gold prices, sparked by the release of key Personal Consumption Expenditures (PCE) data, which suggested a moderation in inflationary pressures.
In August, the Fed's favored inflation gauge rose by 3.9 per cent, down from the 4.4 per cent reading in July. FIIs sell ₹25,000 crore in Sept on high US bond yields, crude oil prices "Moreover, on a monthly basis, it increased by a
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