Strong buying was witnessed in the price of gold. Gold futures contract for August 2024 expiry opened at ₹72,879 per 10 gram on the Multi Commodity Exchange (MCX) in today’s morning deals following a fall in US dollar rates and US Treasury yields. Gold touched an intraday high of ₹72,958 within minutes of the opening bell. Talking about the international market, the spot gold price is around $2,368 per ounce, while the Comex gold price is around $2,387 per troy ounce.
The effect of changing the price of gold
The rise in gold prices today is directly linked to the weakening of US dollar rates. According to Live Mint news, this is an important development, driven by the US dollar index approaching the 104 level and the US dollar price hitting a two-month low in the foreign exchange market. The changing price of gold has led to profit-booking in the US Treasury market, which has led to a decline in US Treasury yields. As a result, investors are moving their funds from the currency and bond markets to other assets, especially gold.
Gold prices rose as buyers were cooling the US dollar today after weak ADP led by non-farm payrolls data (NFP) led to a drop in gold prices. There is also talk of a rate cut by the US Fed. The sentiment for gold still looks positive as we move towards a possible Fed rate cut in the second half of the year.
In which range will gold remain
According to experts, gold prices may remain in the range of Rs 72,000 to Rs 73,800, as investors eagerly await the release of US job data. This is a key indicator of the health of the US economy. This data, to be released on Friday, is expected to have a significant impact on the gold market. Being aware of this event and its potential impacts can help investors make informed and prepared trading decisions.
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