Gold rate today- On Friday, bourses saw a robust increase in gold prices following US Fed Chairman Jerome Powell’s speech at the Jackson Hole Symposium. As the US Fed Chair suggested a US Fed rate drop at the September US Fed meeting, gold prices on the Multi Commodity Exchange (MCX) shot to an intraday high of ₹71,940 per 10 gm, recording a roughly 1% increase against the intraday low of ₹71,302.
Experts in the commodities market claim that the likelihood of a rate decrease at the US Federal Reserve meeting has been strengthened by Jerome Powell’s remarks at the Jackson Hole meeting and the US Fed minutes. As a result, a significant increase in gold prices is anticipated on Monday. They insisted, nonetheless, that the ₹72,300 threshold represents a barrier for the current MCX gold prices. Given the current positive feeling surrounding the precious yellow metal, they recommended a buy-on-dips approach. Since Powell adopted a dovish position on interest rates, the US dollar has dropped to a seven-month low.
US Fed rate reduction rumours
“Gold prices soared to a new record high of $2,531 per ounce in the international market this week,
Sugandha Sachdeva, founder of SS WealthStreet, noted that rising expectations for the beginning of the US monetary easing cycle next month have driven the forecast for gold prices. The likelihood of a 25 basis point rate drop in September was strengthened by the publication of the most recent Fed minutes. In addition, the Fed Chair Jerome Powell’s speech at the Jackson Hole conference, where he maintained a dovish position and hinted at the impending rate decreases, was a major highlight of the week.
Powell alluded to the likelihood of a more significant decrease at the following meeting, citing signs of deterioration in the employment market and lessening inflationary pressures, even though the market had priced in a 25 bps cut.”
decline in US dollar exchange rates
Furthermore, the demand for gold has been further bolstered by a declining dollar index, which has reached a seven-month low. The largest gold-backed exchange-traded fund in the world, the SPDR Gold Trust, saw its holdings reach 859 tonnes in July—the highest level in seven months—indicating a return of investor interest, Sugandha continued.
Sugandha Sachdeva of SS WealthStreet said that expectations of reduced borrowing costs have sparked increased interest in gold. Lower interest rates generally reduce the cost of holding gold, a non-yielding asset, which makes it more appealing to investors.
Important levels to monitor in the current gold rate
Sugandha Sachdeva provided the following analysis on the near-term prognosis for gold prices: “After the recent rally, gold prices in the domestic market are currently facing short-term resistance at the Rs. 72,300 per 10 gm level.” In the next few days, prices may rise above ₹73,500 per 10 gm if there is a clear push above this level. Support for gold is observed at ₹70,500 per 10 gm level on the downside.
2025 gold price target
Anuj Gupta, Head of Commodity & Currency at HDFC Securities, stated, “Gold investors are advised to buy and hold for medium to long-term as September US Fed rate cut would be the end of high interest rate regime in the global economy.” Gupta predicted the end of the high interest rate regime and the start of a low interest rate regime. A period of low interest rates lasting at least six to nine months would start if the US Federal Reserve announced a rate drop in September. For the medium to long term, gold prices are therefore predicted to continue being a great asset to “buy on dips.”
Speaking about the goal for the price of gold in 2025, Genesis Gold Group CEO Jonathan Rose stated, “We are seeing the market reacting positively with gold and financial gains and already factoring in a September interest rate decrease of 25bps. Rate reductions have historically helped gold prices, but in recent years, the price has risen steadily, hitting new highs every day. The volatility of the local and global markets is causing gold to react spectacularly, and we predict that by 2025, an ounce of gold will reach $3,000.”
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