Gold Prices React to Powell’s Speech
Gold prices are rising sharply in response to Jerome Powell’s upbeat comments on the US economy, fueling speculation of a likely US Federal Reserve rate decrease. Experts explain this spike to the anticipation of a rate decrease, which is driving gold prices higher. Traders and investors are keeping a careful eye on the May 15, 2024, release of the US Consumer Price Index (CPI). The approaching data release is expected to have a significant impact on gold prices, adding to the present market volatility.
Market Movement Analysis
Gold futures on the Multi Commodity Exchange (MCX) for June 2024 opened at ₹72,336 per 10 kilos and immediately rose to an intraday high of ₹72,444. This increasing movement shows the continued trend of rising gold prices caused by a variety of economic variables. Spot gold prices in the international market linger around $2,360 per ounce, while COMEX gold prices are about $2,365 per troy ounce. These prices reflect the global demand and sentiment for the precious metal.
Expert Insights on Gold Price Surge
Seasoned commodity market professionals assess the latest gold price increase in light of Jerome Powell’s optimistic economic outlook. The US Fed rate cut is expected to drive the momentum, with firm support at ₹71,900 and probable hurdle at ₹72,800 per 10 grams.
Focus on US Fed Rate Cut
Anuj Gupta, Head of Commodity & Currency at HDFC Securities, connects the recent increase in gold prices to Powell’s comments and the following expectation of a US Federal Reserve rate cut. This emotion highlights how the market reacts to monetary policy signals and economic factors. The imminent release of US CPI data is likely to provide additional insight into inflationary patterns that affect gold prices. Traders are closely watching the data, expecting it to influence market mood and drive short-term price fluctuations.
Gold Price Outlook
Analysts predict a healthy prognosis for gold prices, citing solid support levels in both domestic and international markets. Gupta advocates sticking to a buy-on-dips strategy during the intraday session, anticipating greater upside potential in the short term. Before making any investing decisions, investors should proceed with caution and consult with recognized specialists. Individual analysts’ or brokerage firms’ views and recommendations should be weighed alongside personal financial goals and risk tolerance.
As gold prices respond to economic factors and monetary policy developments, investors must navigate market volatility with caution and informed decisions. Whether to buy or wait is determined by individual investing strategies and risk tolerance, stressing the necessity of remaining knowledgeable and adaptive in volatile markets.
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