Gold rate today under pressure as US dollar rate jumps ahead of FOMC meeting. Buy or wait for more correction?
Gold rate today: On account of the rising US dollar ahead of the US Fed meeting, gold price today witnessed sharp selling during morning deals. Gold future contract on the Multi Commodity Exchange (MCX) for April 2024 expiry opened lower at ₹65,348 per 10 gm level and went on to touch an intraday low of ₹65,180 within a few minutes of the commodity market opening. However, the yellow metal witnessed some buying at the lower levels and pared some of the early morning losses.
The MCX gold rate today is currently quoting around ₹65,260 per 10 gm. In the international market, spot gold price is oscillating around $2,146 per ounce level. Silver rate today witnessed heavy correction in the early morning session.
Silver price on MCX opened lower at ₹75,400 per kg and went on to touch an intraday low of ₹75,200 level. In the international market, silver price is around $25 per ounce level. According to commodity market experts, after the hotter-than-expected US inflation data for February 2024, the US PPI print further hit speculation about a near-term US Fed rate cut in the upcoming FOMC meeting this week.
They said that such speculations about the US Fed rate triggered buying in the US dollar that fueled the US dollar index at a one-week high. They said that despite a 0.50 percent correction in gold and silver prices today, the risk-reward ratio is still not conducive. They advised investors to wait for at least 2 percent more correction in both metals.
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