Due to the cautious stance of US Federal Reserve Chairman Jerome Powell on potential interest rate cuts, which bolstered the US dollar, gold prices have declined in the international market for the second consecutive week.
However, despite the Indian National Rupee (INR) hitting a record low, domestic gold prices have seen a slight increase, driven by the heightened demand for physical gold during the wedding season. The MCX gold rate for the February 2024 contract closed at ₹76,655 per 10 grams, while the spot gold price settled at $2,633.20 per troy ounce.
US Fed’s Cautious Tone and Its Impact on Gold Prices
The cautious stance of US Federal Reserve Chairman Jerome Powell on an interest rate cut has strengthened the US dollar, leading to a decline in gold prices in the international market for the second consecutive week. This cautious approach has put pressure on gold rates, as investors seek clarity on the future trajectory of interest rates.
Domestic Market Gains Amid INR Record Low
Despite the international decline, gold prices in the domestic market have registered marginal gains. This is attributed to the rise in demand for physical gold due to the ongoing wedding season in India. The Indian National Rupee (INR) hitting a record low has also played a role in supporting domestic gold prices.
MCX Gold Rate and Spot Gold Price
The MCX gold rate for the February 2024 contract closed at ₹76,655 per 10 gm, reflecting the market’s response to the current economic conditions. Meanwhile, the spot gold price ended at $2,633.20 per troy ounce, indicating the fluctuations in the global market.
Expert Opinions and Future Outlook
Commodity market experts suggest that the long-term view for gold remains positive, but in the near term, the precious metal may trade sideways. The domestic market is expected to see gold prices ranging between ₹75,800 and ₹77,500 per 10 gm, while the international market may see prices between $2,620 and $2,660 per ounce.
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