Gold crosses Rs 66,000/10gm as Fed hints at rate cuts – Times of India

by The Technical Blogs


Hyderabad: Gold whizzed past the $2,200 per ounce mark to hit an all-time high of $2,222 in international spot markets on Thursday after the US Federal Reserve confirmed three rate cuts were in the offing this year. Gold prices in India too crossed the Rs 66,000 per 10 gm milestone for the first time on Thursday.
On MCX, the yellow metal opened at a lifetime high of Rs 66,100 and came within striking distance of the Rs 67,000 mark as it clocked an intraday high of Rs 66,943.In Mumbai’s market, gold closed the day at Rs 66,600/10gm. Dilip Parmar, research analyst, HDFC Securities, attributed the new record-busting feat to the US Fed‘s less hawkish stance in policy meetings.
“This pushed the haven dollar and US treasury lower, which directly supported the non-interest-bearing gold prices. The strong demand from central banks, geopolitical uncertainty and expectations for looser monetary policy fuelled the rally in the yellow metal. In dollar terms, gold has resistance at $2,500 and support at $1,980,” Parmar said.

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However, later in the day, prices slipped below $2,200. “While US Fed saying it will cut interest rates thrice in 2024 and twice in 2025 triggered a jump, later in the day, it fell to an intraday low of $2,165 in reaction to inflationary concerns,” said Indian Bullion and Jewellers’ Association national secretary Surendra Mehta, who expects a further correction.
“A correction is due. Today, it came down by $55. I’m still expecting another $80 correction,” he added.
Bullion analyst G P S Vigneshwar said that gold faces a strong resistance at $2,255 and may stop there but spot silver – which rose to a high of nearly $26 – will continue its aggressive march towards $30 in Comex spot in the coming days.


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