Business
Gold Rates See Fluctuations Amid Economic Data Expectations
On July 24, 2024, gold rates on the Multi Commodity Exchange (MCX) showed signs of recovery after a dip in the previous session. The prices moved upwards, supported by the international bullion market as investors eagerly awaited critical economic data from the United States.
MCX gold contracts for August delivery traded at ₹68,801 per 10 grams, reflecting a 0.42% increase. Additionally, silver contracts for September also saw a rise, going up 0.21% to ₹85,100.00 per kg.
Internationally, gold prices experienced a slight uptick, with spot gold climbing 0.3% to $2,416.39 per ounce and U.S. gold futures increasing by 0.4% to $2,416.10. Market experts have attributed the fluctuations to the anticipation of economic updates that could impact the Federal Reserve’s timeline for potential rate cuts.
Following a recent announcement by Finance Minister Nirmala Sitharaman, which included a cut in custom duties on gold and silver to 6%, there has been a notable shift in market dynamics. Ajay Kedia from Kedia Advisory noted that the reduction is expected to bolster physical demand for gold in domestic markets.
Kedia indicated that gold prices might find support around the ₹67,700 mark, while the resistance level is anticipated at ₹69,600. This outlook aligns with the ongoing trends influenced by a weakening rupee, global tensions, and buying activity from central banks.
In parallel, the silver market is also receiving attention, with spot prices rising 0.2% to $29.27 per ounce, reflecting growing industrial demand for the metal. On MCX, silver rates traded above the ₹85,000 level, with support projected at ₹83,800 and resistance at ₹87,800.
Looking ahead, traders are particularly focused on the U.S. personal consumption expenditures data, which is set to release on Friday. The CME FedWatch Tool suggests there’s a 96% likelihood of a 25 basis points rate cut in September.
As for silver, rates in major Indian cities are closely mirroring trends in the global market. Analysts believe that the overall economic environment will continue to influence both gold and silver prices as they navigate through various market factors.
