Gold rate today: Following the rise in crude oil prices and a strong US dollar, as Trump’s address to the nation shattered hopes of a ceasefire in the US-Iran war. In the international market, the COMEX gold rate today crashed over $100 per troy ounce, hitting an intraday low of $4,681.57/oz. Currently, the gold price in the international market is trading above $4,700 with an intraday loss of around 2.50%.
Likewise, the MCX gold rate today opened downward at ₹1,52,490 and touched an intraday low of ₹1,50,480 per 10 gm, losing over ₹3,000 within a few minutes of the Opening Bell. Currently, the gold price on the Indian bourse is trading around ₹1,50,750 per 10 gm level, logging an intraday loss of around ₹3,000 per 10 gm.
Trump’s address to the nation
Connecting the gold price fall to Trump’s speech, Anuj Gupta, a SEBI-registered market expert, said that Donald Trump’s address to the nation on Iran has shattered hopes of a ceasefire in the US-Iran war. He said the US president’s vow to hit hard against Iran in the next few weeks has escalated tensions in the Middle East and renewed inflation fears.
On how these developments are affecting the gold price today, the SEBI-registered market expert said, “Soaring crude oil prices have renewed the inflation fears, which has hit the US Fed rate cutn hopes in the near-term.”
Gold price today in India: Key levels to watch
Expecting volatility in the gold rate today, Sugandha Sachdeva, Founder of SS WealthStreet, said, “Gold rate today in India is likely to find support near ₹1,35,000 to ₹1,33,500 zone, with a strong resistance zone seen around ₹1,57,600. A sustained break beyond this range will be required to establish a clear directional trend.”
Sugandha Sachdeva of SS WealthStreet said that much will depend upon the US payroll data, which is coming tomorrow and predicted MCX gold rates to remain in ₹1,35,000 to ₹1,57,000 per 10 gm range until this US payroll date becomes public on Friday.
Hawkish US Fed
Sugandha Sachdeva of SS WealthStreet believes that the US Fed and other global central banks including the European Central Bank, Bank of England, and Bank of Japan have maintained a hawkish bias amid persistent inflation risks, particularly those stemming from energy supply disruptions. This reinforces expectations of tighter monetary conditions, which remain a headwind for gold.
US-Iran war news
In an adddress to the nation today, Trump said Washington’s “core strategic objectives” in the Iran war were nearing completion. However, he did not provide a clear outlook on when the conflict would end.
Trump’s comments that the United States would continue to attack Iran intensified geopolitical jitters and drove crude oil prices higher.
“A prolonged disruption in oil/energy flows via the Strait of Hormuz can still keep oil prices elevated longer than we had initially hoped for and the Indian economy is one of the most vulnerable to high energy prices,” said analysts led by Chetan Seth of Nomura.
The brokerage downgraded Indian equities to “neutral” from “overweight”, citing elevated risks to earnings and valuations from higher crude prices.
(With inputs from Reuters)
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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