Gold rate today at nine-week high on weak US dollar, US Fed rate pause buzz. Should you buy in this rally?
₹59,543 and went on to hit intraday high of ₹59,566 per 10 gm levels within few minutes of commodity market's opening today. In international market, gold price continues to trade at nine-week higher levels of $1,970 per ounce.
Likewise, silver rat today opened higher at ₹75,489 per kg levels and went on to hit intraday high of ₹75,539 levels in few minutes of commodity trade opening on MCX. In international market, the precious white metal is oscillating around $24.820 per ounce levels.
On why outlook for gold rate today is positive, Anuj Gupta, Vice President — Research at IIFL Securities said, “After US inflation hitting two-year low, US dollar has been continuously under sell off pressure as market is not expecting any US Fed rate hike in near term. This has supported gold price rally as investors are shifting money from currency to other assets including gold and equities." Anuj Gupta of IIFL Securities advised gold investors to further hold the yellow metal positions despite gold prices climbing to nine-week high in international market and six-week high in domestic market.
On triggers that may support gold price rally in near term, Navneet Damani, Senior VP – Commodity Research at Motilal Oswal said, “Along with volatility in Dollar Index, weak economic data points, increase in expectations that the US Federal Reserve might soon hit pause on its interest rate-hiking cycle is supporting an up-move in gold and other bullions. Dollar Index hovered around the 100 mark after marking 15 month low last week; US 10Y Yield also trades steady after inching lower in the earlier session." Damani went on to add that the US housing numbers declared on Wednesday were reported weaker than expectations putting some pressure on
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