Gold price regains ₹58,000 levels on MCX after dovish US Fed minutes. Good opportunity to buy?
Gold rate today: On account of dovish stance shown by US Fed officials in Wednesday's US Fed's minutes release, gold price today extended its rally and regained ₹58,000 per 10 gm mark on Multi Commodity Exchange (MCX). MCX gold price today opened upside at ₹58,045 per 10 gm levels and went on to hit intraday high of ₹58,075 levels within few minutes of commodity market's opening bell.
However, profit booking soon triggered and the yellow metal made intraday low of ₹58,001 per 10 gm by end of near 20 minutes of trade. Speaking on the reasons that has fueled gold prices, Sugandha Sachdeva, Executive Director and Chief Strategist at Acme Investment Advisors said, “Gold's outlook has recently brightened, driven by dovish signals from the US Fed officials hinting at the possibility of a rate pause during the Fed's upcoming meeting in November.
This has spurred a rally in the precious metal, with gold prices climbing in the past four consecutive trading sessions. The decline in the US dollar and treasury yields has further fuelled this upward momentum." Sugandha Sachdeva went on to add that the simmering geopolitical tensions in the Middle East have reignited gold's appeal as a safe haven asset.
Investors, seeking refuge amid uncertainty, are increasingly drawn to the allure of gold. On other factors that has lend support to the precious metal, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “We have noticed that due to gropolitical tenion the safe haven demand has been seen in the bullions.
Dollar Index is also correction from over bought zone which signalling support for the gold price. Dollar index is trading at 105.40 levels." HDFC Securities expert went on to add that demand by fund houses and central
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