Gold prices saw an increase on November 28, after the decline in the US inflation data released in the last trading session. Therefore, a rate cut can be expected by the Federal Reserve on this basis.
Spot gold price was up by 0.4 per cent to $2,645.67 per ounce, Similarly US gold futures saw an increase of 0.2 per cent to $2,644.80, with low trading volumes expected as US markets are closed for Thanksgiving.
While the Fed is widely expected to implement a third rate cut in December, minutes from the November 6-7 meeting, released on Tuesday, revealed that officials were divided on how much further they may need to lower rates.
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Gold being a safe haven asset is known to do well in a lower interest rate environment. Gold Prices posted their deepest one-day decline in more than five months on Monday, and hit its lowest since Nov. 18.
Indian gold price movement
Gold price today touched a mark of 76,310 per 10 grams, an increase of 0.22 per cent from 76,140 its previous close on November 27. However, the price 1 week ago saw a decline of 1.04 per cent from 77,110.
A similar trend could be seen in a month where prices declined by 4 per cent from 79,490.
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The long term decline in gold price can be attributed to the firm dollar and high treasury yields along with stringent monetary policy expectations.
Sriram Iyer, Senior Research Analyst at Reliance Securities, said”The price has given change in structure form down trend to uptrend and supported by rising trend line as shown in chart, If we get bullish candlestick pattern at support level 76,644 then we can look for buying opportunity Recommendation: Go long in the evening session.”
(With Reuters Inputs)
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