Gold rate today: Before the beginning of the US Fed meeting, gold prices opened flat on Tuesday. Gold futures contract on MCX for February 2024 expiry opened upside at ₹77,090 per 10 gm and touched an intraday high of ₹77,199 per 10 gm within a few minutes of the Opening Bell.
However, MCX gold rate soon came under the profit-booking trigger and came close to its previous close of ₹77,061 per 10 gm mark. In the international market, the spot gold price was around $2,653 per ounce, while the COMEX gold price was around $2,670 per troy ounce.
According to experts, gold prices today are expected to take a cue from the US dollar movement as they will soon dominate the yellow metal price. They said that the US Fed meeting is beginning today, and the outcome regarding the US Fed rate cut is expected on Wednesday. As the market has already discounted a 25 bps rate cut announcement, any fresh upside in the precious metal prices can be expected only when a surprise aggressive rate cut comes out of the US Fed meeting. However, they said that such a positive surprise was unexpected and that the US Fed meeting may become a non-event for gold prices.
US Fed meeting
Expecting the gold prices to remain sideways ahead of the US Fed meeting outcome, Anuj Gupta, Head — Commodity & Currency at HDFC Securities, said, “Gold prices are expected to follow US dollar prices as the outcome of US Fed meeting would have a direct impact on the American currency. As the market has already discounted a 25 bps interest rate cut by the American Central Bank, the FOMC meeting is expected to remain a non-event for the yellow metal and other precious metals.”
On why the US Fed meeting is expected to remain a non-event for metal prices, Anuj Gupta said, “The market has already discounted a 25 bps rate cut, and probability of higher interest rate cut is bleak. I won’t be surprised if the US Fed decides to keep the rates unchanged as Donald Trump is expected to take oath soon, and the American Central Bank may leave the decision pending for the next US Fed meeting.”
Gold price Forecast
Gold traded within a volatile range, continuing last week’s up-and-down swings as markets brace for a series of major economic events this week. Key data points include the US Fed’s policy outlook, the PCE price index, RBI meeting minutes, and updates from the ECB and China’s monetary policy decisions. Amid these developments, gold is likely to trade between $2,645–$2,675 on Comex, with minor strength expected on dips. In MCX, the range is projected at ₹76,500 to ₹78,000, as traders navigate heightened uncertainty.”
