Gold Rate Today Hits ₹66,778 Peak After Fed Decision: Buy Now or Wait?

Gold market witnessed remarkable surge today as Gold prices soared to new peak, reaching ₹66,778 per 10 grams on Multi Commodity Exchange (MCX). This spike came shortly after opening of commodity market, reflecting bullish sentiment surrounding precious metal. Internationally, spot gold prices remained robust, sustaining above $2,200 per ounce levels, with current spot price hovering around $2,202 per ounce. This surge in gold prices was primarily fueled by outcome of US Federal Reserve meeting, which concluded with significant implications for future trajectory of gold & other asset classes.

Reasons Behind Rally

The surge in gold prices can be attributed to outcome of US Federal Reserve meeting, where central bank decided to leave Fed fund rate unchanged at 5.25%-5.50%. However, markets reacted positively to Fed's dovish stance, particularly regarding its projection of three rate cuts in 2024. This dovish outlook provided boost to gold prices, as investors interpreted it as signal of continued monetary policy support amidst economic uncertainties. Additionally, Fed Chair Jerome Powell's comments emphasizing importance of achieving inflation targets further bolstered investor confidence in gold as hedge against inflationary pressures.

Market Expert Insights

Market experts have weighed in on potential trajectory of gold prices in near term. Anuj Gupta, Head of Commodity & Currency at HDFC Securities, predicts further upside in MCX gold rates, with possible target of ₹67,500 per 10 grams. He advises investors to maintain stop loss below ₹65,800 per 10 grams & adopt buy-on-dips strategy to capitalize on market fluctuations. Similarly, in international market, Gupta foresees spot gold prices reaching $2,250 per ounce, with immediate target of $2,230 per ounce.

Also check Gold Rate Price in India

Impact of Crude Oil Prices

Furthermore, surge in crude oil prices is expected to influence movement of gold prices in near term. Rising crude oil prices could exert inflationary pressure, thereby supporting demand for gold as traditional hedge against inflation. As uncertainties surrounding inflation dynamics persist, investors may increasingly turn to gold as safe haven asset, further driving its prices upwards.

To Summarize

In conclusion, surge in gold prices to new peaks reflects prevailing market sentiment favoring safe haven assets amidst economic uncertainties & dovish central bank policies. With US Federal Reserve signaling dovish stance & inflationary pressures looming, gold prices are likely to remain elevated in near term. Investors are advised to closely monitor market developments & consider strategic entry points to capitalize on ongoing gold price rally.