Gold prices drop from all-time highs over strong US inflation figures
Gold price today: Gold rates move higher on MCX; what should be your strategy for MCX Gold today? Even though bullion is often touted as a hedge against inflation, its attractiveness tends to diminish in periods of elevated interest rates. On Tuesday, bullion prices reached an all-time high of $2,365.09. "Since mid-March, both gold and silver prices have been steadily climbing, reaching all-time highs in both international and domestic markets.
This surge in demand can be attributed to expectations of rate cuts by central banks worldwide and escalating geopolitical tensions, factors that have significantly impacted bullion prices. Currently, both gold and silver are navigating through overbought territories, facing strong resistance levels. International gold prices are encountering robust resistance between $2450 and $2485, while domestically, the bullish momentum is expected to taper off around levels of 72000 to 72200.
Similarly, silver prices are facing resistance internationally at levels between $28.50 and $28.95, and domestically at around 83500. Given these conditions, profit-taking in both precious metals is anticipated to be on the horizon," said Riya Singh – Research Analyst, Commodities and Currency Desk, Emkay Global. In a recent statement, HSBC projected a broad trading spectrum for gold prices in 2024, ranging between $1,975 and $2,500.
"Escalating geopolitical risks significantly bolster gold as hot and cold conflicts, and a record number of elections this year, keep the risk thermometer high," HSBC was quoted as saying by Reuters. The Shanghai Futures Exchange announced on Wednesday its decision to implement trading limits on gold contracts, prompted by a significant surge in prices. Also read: Oil
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