Gold Price Increases to ₹71,278 and $2,328

Key Points:

• Gold prices rose on MCX India to ₹71,278/10 gm and COMEX US to $2,328/oz.
• The US Dollar Index fell to 105.50, boosting demand for gold as it became cheaper for non-USD holders.

In June 2024, the gold market has exhibited significant activity. On India’s Multi Commodity Exchange (MCX), the gold rate for June opened at ₹71,278 per 10 grams. Consequently, this marked a notable increase of ₹550 from the previous close. This upward movement reflects a renewed investor interest in the bullion market. Gold is currently priced at $2,328 per troy ounce on the COMEX in the United States, marking a 0.75% increase. These figures underscore a global bullish sentiment in the gold markets.

Gold Rises as USD Index Drops 1 Point to 105.50

The US Dollar Index has dropped to 105.50. Previously, it was at 106.50, indicating a decrease in the dollar’s strength against major currencies. This 1-point drop plays a crucial role in the gold price surge. A weaker dollar generally makes gold cheaper for holders of other currencies, thus increasing demand and pushing prices higher.

Market Experts Predict Gold Price Uptrend

Anuj Gupta, who serves as the Head of Commodity & Currency at HDFC Securities, remarked on the recent trends in gold prices. He mentioned that gold has entered an upward trajectory following the US Federal Reserve’s cautious stance during the recent FOMC meeting. According to him, the Fed chairman’s downplaying of a rate hike has been well-received in the bullion market.

Similarly, Sugandha Sachdeva, the Founder of SS WealthStreet, noted that gold prices have rebounded after experiencing a correction at the end of April. She explained that this rebound resulted from changing sentiments about the US Federal Reserve’s monetary policy.

Gold Price Supported by Fed’s Policy; Cushion at $2300, ₹70500

The recent US Federal Reserve meeting took a cautious stance, emphasising a need for confidence in reaching a 2% inflation target before considering rate cuts. This approach has benefited gold prices, providing a positive outlook for investors. Internationally, investors expect gold to find some cushion around the $2300-$2280 per ounce zone, whereas domestically, the cushion is around ₹70500-₹70400 per 10 gm. Internationally, we anticipate near-term resistance at $2400 per ounce and domestically at ₹72600 per 10 gm.

Global Economic Trends to Influence Gold Price

Gold continues to be influenced by global economic indicators and currency fluctuations, keeping the outlook cautiously optimistic. The linkage between the US Dollar Index and gold prices suggests that any further weakening of the dollar could push gold prices higher. Investors should closely monitor how currency strength, economic policies, and investor sentiment interplay to dictate near-term market dynamics.