Gold price today: MCX Gold trades lacklustre; how to trade in bullion today?
US Federal Reserve left policy rates unchanged on Wednesday, November 1, at a 22-year high level of 5.25-5.50 per cent. The US weekly jobless claims data on Thursday showed the number of Americans filing new claims for unemployment benefits increased moderately last week, according to a Reuters report. "Initial claims for state unemployment benefits rose 5,000 to a seasonally adjusted 217,000 for the week ended October 28.
Economists polled by Reuters had forecast 210,000 claims for the latest week," reported Reuters. Experts are of the view that gold can move up on the expectations that rate hikes are near their end. In the case of low-interest rates, the opportunity cost of holding gold is also lower, making gold more attractive.
When interest rates go higher, they make other interest-bearing investments such as bonds more appealing. Besides, the geopolitical risk due to the Israel-Hamas war is also a significant factor which can support gold prices since gold is considered a safe-haven asset in times of economic uncertainty. MCX Gold for December 5 delivery traded 0.01 per cent lower at ₹60,902 per 10 grams around 10:40 am.
Also Read: Weaker rupee dents FPI returns; JP Morgan bond index inclusion offers hope (Exciting news! Mint is now on WhatsApp Channels. Subscribe today and stay updated with the latest financial insights! Click here!) Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile in today’s session but they could hold key support levels of $1,968 and $22.40 per troy ounce, respectively, on a closing basis. Jain believes any corrective dips in gold and silver could be a buying opportunity at lower levels.
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