The Gold rate today shows a huge difference from the past few months’ track records. The global economy witnessed strong buying in the early morning deals.MCX gold rates will open the upside at ₹84,946 and touched an intraday high of ₹ ₹85,162 per 10 gm within a few minutes of the opening Bell on Monday. In the international market, the COMEX gold price oscillates around $2,915 per troy ounce. The spot gold price hovers around the $2,904 per ounce mark.
According to the market expert, the gold rate today is showing an uptrend because of the two factors. The US dollar rate hitting a two-month low and uncertainty surrounding US trade policy. They also said that the gold prices are going to be expected as they remain in the bull trend and predicted $3,000 and $3,080 per ounce. If the economic uncertainty caused by Donald Trump’s tariff policy doesn’t end soon.
On the primary reason fueling the gold price today. Anuj Gupta, the Head of Commodity & Currency at HDFC Securities, stated,
“The Gold rate today is in a bull trend due to two factors: the US dollar rate hitting a two-month low and uncertainty surrounding US trade policy. ”
Ventura Securities stated,
“With the increased US trade tariffs, there’s a lot of uncertainty surrounding the U.S. trade policy. These have increased the demand for safe-haven assets like Gold. Spot gold hit a record high of $2,943, and Comex gold $2968 an ounce. There are talks around about tariffs on gold, which also has sparked a rush for the physical metal in London, Switzerland and Asia to ship to the US ahead of any new levy.”
Pointing towards the rising demand by central banks Ventura Securities also added,
“Gold price keeps trading at record highs on the back of increasing demand by central banks for their reserves to maintain an expected surge in fiscal deficits which could raise inflation manifold and probably a recessionary fear across the globe. Central banks acquired 1,045 tons of gold in 2024, marking the 3rd consecutive year of purchases surpassing 1,000 tons. Central banks bought more gold over the last 3 years than in 6 years before 2022.”
Gold price outlook
Ventura Securities shares their opening on the outlook for gold prices,
“Gold price today seems to head $3,000 per ounce and likely to well cross $3,080. The recent strength stems from a mix of higher tariff safe haven demand, geopolitical uncertainties, inflation concerns, central bank policies, and continued strong demand from both central banks and retail investors.”
Gold prices were pressurized due to the strength of Treasury yields and dollar bias right after the Federal Reserve Chair Jerome Powell. That has been careful and flagged as not running to cut interest rates.
Powell notes show that US monetary policy had been well decreased after 100 basis points of rates that cut through 2024.
The strength of the USD the bigger gains in the gold are getting restricted. The interest rates will be elevated. Since US importers face inflations due to the tariffs. The FED has less momentum to cut the interest rates. The higher interest rates will be presented as the more pressurized locations on the gold like nonn Yielding assets.
CPI inflation data for January was 3.0%. A stronger CPI report could going to be proven as more damaging for the riskier assets but also boost the US dollar.
Powell also stated,
“If the economy remains strong and inflation does not continue to move sustainably toward 2 percent, we can maintain policy restraint for longer. If the labor market were to weaken unexpectedly or inflation was to fall more quickly than anticipated, we can ease policy accordingly.”
Ventura Securities report stated
“Gold will continue to be volatile, but as long as “uncertainty” prevails, it is likely to remain bullish,”.
