Gold Market Update

Market Overview

The MCX gold rate opened with a gap down at ₹1,38,411 per 10 gm on Tuesday, logging a 2% intraday loss. The COMEX gold price is currently around $4,375/oz, nearly 1.5% below yesterday's close.

Market Analysis

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Market experts attribute the decline in gold prices to persistent inflation fears stemming from the devastation of oil infrastructure in the Middle East. The market expects the US Federal Reserve to keep interest rates unchanged in the near term, leading to a potential offloading of gold reserves by central banks worldwide. This oversupply is expected to hit demand.

Expert Insights

• Anuj Gupta, a SEBI-registered market expert, believes that the US dollar remains strong due to ongoing inflation concerns, despite the de-escalation in the US-Iran war.
• Jateen Trivedi, VP Research at LKP Securities, attributes the decline to rising inflation risks and persistent geopolitical tensions in Western Asia, which are keeping crude prices elevated.

Outlook for MCX Gold Rate

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The MCX gold rate is expected to remain in a broader range of ₹1,28,000 to ₹1,40,000. A break above ₹1,40,000 could lead to a target of ₹1,45,000 and ₹1,50,000 per 10 gm, while a break below ₹1,28,000 could lead to a target of ₹1,20,000 per 10 gm.