Today's opening bell for the MCX gold rate (February 2025 future contract) opened higher at ₹77,000 per 10 gm.
Today's gold rate: Despite investors waiting for US data to provide a clear picture of the US economy and the US Fed rate drop, the yellow metal saw modest buying interest in the early morning session on Thursday. Within minutes of the Opening Bell, the MCX gold rate (February 2025 contract) reached an intraday high of ₹77,074 after opening higher today at ₹77,000 per 10 gm. The price of spot gold is fluctuating about $2,632 per troy ounce on the global market.Observers of the commodity market claim that following the FOREX market's profit-booking trigger, there was some purchasing in the gold rate during the Opening Bell today.The main factor making gold more accessible in the current market system is the decline in the value of the US dollar.
Prospects for the price of gold
Kyle Rodda, financial market analyst at Capital.com, stated that he expected the sideways trend in the MCX gold rate movement to continue: "Gold appears to be consolidating in a narrow range, which frequently indicates a market ready for a breakout. I believe there will be an upward breakout.
According to Rodda, geopolitical threats and the prospect of growing public debt as a result of the significant fiscal deficit under Trump's presidency would likely keep gold optimistic in 2025. This is in spite of possible obstacles from the US dollar's strength and slower Fed rate decreases.
Focus on the US Fed rate decrease
"The profit-booking trigger in the US dollar rates is what caused the gold price increase on Thursday. Anuj Gupta, Head of Commodity & Currency at HDFC Securities, stated, "Chances of the US Fed rate cut are looking weak after the December 2024 US Fed meeting as the US inflation still exceeds 2 per cent." Investors are waiting for the plethora of US data that will give a clear picture of the US economy and a certain conviction about the US Fed rate cut in 2025. Therefore, it is anticipated that these data will make clear whether the rate cut will be executed at the next US Fed meeting or at a later date.
Markets are pricing with only an 11.2% possibility of a rate cut in January, according to the CME's FedWatch Tool.
As inflation continues to rise over the Fed's 2% objective, traders expect the Fed to take a measured approach to additional rate decreases in 2025.
"The profit-booking trigger in the US dollar rates is what caused the gold price increase on Thursday. Anuj Gupta, Head of Commodity & Currency at HDFC Securities, stated, "Chances of the US Fed rate cut are looking weak after the December 2024 US Fed meeting as the US inflation still exceeds 2 per cent." Investors are waiting for the plethora of US data that will give a clear picture of the US economy and a certain conviction about the US Fed rate cut in 2025. Therefore, it is anticipated that these data will make clear whether the rate cut will be executed at the next US Fed meeting or at a later date.
Markets are pricing with only an 11.2% possibility of a rate cut in January, according to the CME's FedWatch Tool.
As inflation continues to rise over the Fed's 2% objective, traders expect the Fed to take a measured approach to additional rate decreases in 2025.
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