Gold rate today: Domestic gold futures crossed the Rs 66,900 per 10 grams mark for the first time on Thursday, March 21, tracking a record high in global benchmark rates after the Federal Reserve stayed course on three planned instances of reductions in key lending rates in 2024. MCX gold futures (April 5) rose by as much as Rs 1,193, or 1.8 per cent, to Rs 66,943 per 10 grams. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Interest rates and gold prices share an inverse relationship. Typically, any reduction in interest rates lowers the opportunity cost of non-yielding gold and weighs on the dollar, making the yellow metal more attractive for those holding other currencies.

Gold prices climbed as the US dollar and bond yields headed southwards after the Fed projected three rate cuts with a total of 75 basis point reduction this year.

"Gold rallies to an all-time high and is trading close to $2,225 per ounce, while in the Indian markets prices are up close to Rs 67,000 per 10 grams, supported by a sell-off in the US dollar after Federal Reserve officials maintained their view of three rate cuts this year,” said Pranav Mer, Vice President, EBG-Commodity and Currency Research at JM Financial Services.

The latest Fed action reduced the demand for the US dollar and the dollar index (DXY) fell sharply to last trade at 103.64, down 0.19 per cent, against a basket of the top six currencies.

Where are gold prices headed? 

 

“The market might test levels between Rs 67,200 and Rs 67,400 on the higher side," said Rahul Kalantri, VP-Commodities at Mehta Equities. 

"Short positions should only be considered if the price falls and sustains below Rs 66,400. In dollar terms, gold might test $2,224-$2,240 levels while lower side support is at $2,182,” Kalantri added. 

Catch the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.