Gold prices today hit a record high after the US CPI data softened. Will the momentum continue?

on mcx, gold rates finally ended on On a weekly basis, the domestic market closed at a level of 56,341 with a gain of about 1.10 per cent. However, in the international market last week, gold prices rose by about 2.95 per cent and closed at $1,920 an ounce.

According to commodity market Experts say gold rates are rising worldwide after soft US CPI (consumer price index) data pushed the dollar index to a 7-month low. Experts also said US inflation growth for December 2022 marked the lowest annual increase since October 2021, fueling speculation about the US Fed slowing its stance on interest rate hikes. it also pushed Sleep Price rally on weekend session. He further said that if the price of gold continues to rise 55,600 then we may see another round of appreciation in the yellow metal and mcx gold rates may go up 57,700 level in this next round of gold price rally.

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Market expert Sugandha Sachdeva on why gold prices continued to rise, said, “The secular focus of the week was on we CPI data, where soft inflation data The sentiments in the markets were boosted with the dollar index down by around 1.67 per cent for the week. US annual inflation rose to 6.5 percent in December, the smallest annual growth rate since October 2021 and down from a 7.1 percent increase in November. With inflation easing for the sixth month in a row, the Fed is expected to slow the pace of its tightening campaign, a factor in non-interest-bearing assets – gold.”

US Fed interest rate growth

Nirpendra Yadav, Senior Commodity Research Analyst, Swastik Investmart, while expecting a softening of interest rate hike from the US Fed, said, “There is a 95 per cent chance that the US Fed will hike rates, according to the CME Group Fed Watch tool.” 0.25 percent in the next meeting. Expected softening of interest rates in the United States and the beginning of economic activity in China Crude oil demand is on the rise, which is seeing an uptick in its prices, thereby supporting the precious metal.”

Dollar index under pressure

“Positive US CPI data followed by Federal Reserve indicated a slow hike in interest rates. Dollar index is also trading at 7-month low which is positive for gold prices,” Anuj Gupta, Vice President – Research he said. IIFL SecuritiesAdding, “The trend in gold and silver is positive as both are following higher top higher bottom formation.”

pivot level for gold silver price

Anuj Gupta of IIFL Securities said that gold and silver investors should take note of the key levels, “Gold has taken strong support for the week ahead. 55,700 ($1890) level and then 55,200 ($1850) level while on resistance 56,600 ($1930) level and then 57,000 ($1960) level. Silver has strong support 67,500 level and then With resistance at the 66,000 level 70,500 level and then on 72,000 level.”

Talking on the gold price outlook, market expert Sugandha Sachdeva said, “Prices have broken the previous record high of Rs 56191 per 10 grams marked in August 2020, but we need to see follow-through buying at higher levels.” Need to see if prices can sustain.Momentum in near term.If prices manage to stay above 55,600 per 10 grams mark, they seem to be continuing their march towards higher levels 57,700 per 10 gm in coming days, otherwise it should be pegged for some profit booking to support it 54,500 per 10 grams.

Sugandha further added that in the international markets, the $1920-1925 per ounce zone remains a near-term hurdle for gold, while a sustained upward move would allow it to leap towards the $1975 per ounce level.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before taking any Investment Decision.