Gold Prices Today: Yellow metal extends gains as investors await US inflation data, silver up 0.6%

Estimated read time 12 min read

Gold Prices Today: Gold prices extended gains on Wednesday, March 27, as investors awaited US inflation data that will throw further light on the US Federal Reserve’s policy path after the central bank kept interest rates unchanged for the fifth straight meeting this month.

According to commodity market experts, gold prices have retraced from recent highs due to the profit-booking. The yellow metal still possesses steam and may soon touch record-high levels soon as the US Fed rate cuts are expected to inject further momentum in prices. Rate cut means easy money, which means more inflation, and gold is seen as a hedge against inflation.

Spot Gold Prices

At 9:53 am EDT (1353 GMT), spot gold was up 0.6 per cent at $2,191.88 per ounce, while US gold futures rose 0.6 per cent to $2,190.50. The US Core Personal Consumption Expenditures Price Index (PCE) data for February is due on Friday. The PCE rose 0.3 per cent in January.

Also Read: US Fed keeps benchmark rates steady at 23-year high-mark, projects 3 rate cuts in 2024: 5 key highlights

Alex Turro, senior market strategist at RJO Futures told news agency StuffsEarth that he expects range-bound price action for the session as investors come into the sidelines ahead of the report. “We’ll have to see whether or not U.S. inflation here domestically is soft enough to provide this clear path to lower rates in the coming months,” said Turro.

Gold prices hit a record high last week after the US central bank’s policymakers indicated they still expect to reduce interest rates by three-quarters of a percentage point by end-2024, despite recent high inflation. The Fed’s rate-setting panel unanimously voted to leave the benchmark interest rates unchanged at 5.25 per cent – 5.50 per cent, in line with Street estimates.

Traders now see a 70 per cent chance of a June rate cut by the US Fed. Lower interest rates reduce the opportunity cost of holding bullion. Spot silver was up 0.6 per cent at $24.58 per ounce, platinum lost 0.6 per cent to $897.30 and palladium dropped 1.9 per cent to $974.31.

Also Read: Gold price jumps 6% this month. Should you buy as MCX gold rate dips 1,000 from record high?

Gold Prices in India

Back home, the Multi Commodity Exchange (MCX) session, gold futures contracts set to expire on April 5, 2024, last traded 0.33 per cent higher at 66,320 per 10 grams. The session hit a day’s high of 66,499 per 10 grams so far against a previous close of 66,114 per 10 grams.

Jateen Trivedi, VP Research Analyst, LKP Securities said, “Gold prices in MCX were seen positive up by 250 at 66,350+ taking support from Comex Gold trading higher above 2192$ testing 2200$ resistance again and again everyday.”

‘’The participation in gold has increased after Fed’s policy and dovish statement which has triggered new buying momentum as broadly, gold takes support of 2,150$ and resistance of 2,200$ once prices start trading above 2,200$ escalations towards 2,250$ cannot be ruled out,” added Trivedi.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 27 Mar 2024, 09:36 PM IST

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