Gold price: Dips ₹3300 from record high. Should you buy as US non-farm payroll data fails to beat estimates?
- May 04, 2024 03:50 am
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According to experts, the current spot gold price on Comex has support levels at 66 and 37. They also mention resistance levels at 22 and 45 for gold.
Gold rate today: Decline in prices
Gold prices have fallen for the second consecutive week due to easing tensions in the Iran-Israel conflict and reduced speculation about a near-term interest rate cut by the US Federal Reserve.
On MCX, the gold futures contract for June 2024 ended at ₹70,677 per 10 gm, marking a weekly loss of ₹809 compared to the previous Friday's closing price of ₹71,486 per 10 gm.
While today's gold rate on MCX is lower than its record high of ₹73,958 on April 12, 2024, by around ₹3,300 per 10 gm.
Factors influencing Gold rates:
Experts attribute the decline in gold prices to concerns that the US Federal Reserve might delay interest rate cuts due to ongoing inflation risks.
Labor cost data indicating a significant increase added pressure on gold prices. Additionally, the perceived safe-haven status of gold diminished after a possible ceasefire between Israel and Hamas.
Analysis of Gold price trends:
Praveen Singh from Sharekhan by BNP Paribas noted that traders are considering the latest FOMC policy decision, focusing on a "higher for longer" rate narrative, suggesting only one rate cut this year.
Positive US job data and indications of inflationary pressure in the US economy further contributed to the decline in gold prices.
Focus on US Non-Farm Payroll Data:
Praveen Singh anticipates continued pressure on gold prices due to contained geopolitical concerns and diminished expectations of multiple rate cuts.
Despite positive non-farm payroll data for April 2024, which was below market estimates, gold prices are expected to fall further.
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Key levels to monitor:
According to Anuj Gupta of HDFC Securities, Comex spot gold price has support levels at 66 and 37, with resistance levels at 22 and 45.
On MCX, the June futures contract has support at ₹70,080 and ₹69,580, while facing resistance at ₹70,950 and ₹71,700.
Gupta advises gold investors to wait for a long entry, suggesting that gold prices are likely to correct further, with a favorable risk-reward ratio at levels around 50 to 65.
We recommend investors to approach with experts before investing in any companies.