Gold price rebounds from five-week low. Should you buy in this rally?
Gold rate today: After hitting the five-week low of ₹61,400 odd level last week, gold price on the Multi Commodity Exchange (MCX) bounced back strongly and regained around ₹600 per 10 gm on the MCX. According to commodity market experts, profit-booking in US treasury yield and strong US economic data fueling speculations about the US Fed rate cut are some of the major reasons that enabled the yellow metal to pare the lost ground on the weekend.
On triggers that helped in MCX gold rate bounce back, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, "On 17th January last week, MCX gold rate touched 5-week low when it came close to ₹61,400 per 10 gm level. However, the precious metal bounced back strongly on the US Fed's rate cut speculation after strong US data.
Profit-booking in the US bond market also fueled the rebound in gold prices across bourses." Also Read: Global crude oil prices fall on persistent demand concerns On triggers that may dictate gold price movement in the short term, Sugandha Sachdeva, Founder of WealthWave Insights said, "The trajectory of gold prices hinges on various impactful events during the week. Notably, the escalating geopolitical tensions in the Middle East are expected to lend support to the precious metal.
Additionally, market participants will closely monitor the release of the US PCE price index, US Q4 GDP advance estimates, and decisions on interest rates by the Bank of Japan and the European Central Bank." Also Read: EPACK Durable IPO subscription date extended. GMP, review, apply or not? On the outlook for gold price in the short-term, Sugandha Sachdeva said, "Evaluating the price outlook, gold price today is facing resistance at ₹62,700 per 10 gm and has a crucial
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