Gold price today: Rates lacklustre ahead of US Fed policy decision; experts unveil strategy for MCX Gold | Stock Market News

Gold price today: Gold rates traded lacklustre in the domestic futures market Wednesday morning ahead of the US Fed policy decision. Expectations are high that the US Federal Reserve will announce a third rate cut later today and provide insights into its interest rate trajectory for 2025. MCX Gold for February 5 expiry traded 0.03 per cent down at ₹76,850 per 10 grams around 9:25 AM.

In international markets, gold prices moved up amid expectations of a 25 bps rate cut by the US central bank. However, the rise of the US dollar, US treasury yields, mixed US economic data, and newsflow about easing geopolitical tensions capped gains for the yellow metal.

The two-day policy meeting of the US Federal Open Market Committee (FOMC) started on December 17, and its outcome is due today. Market focus is on the central bank’s updated economic projections and the dot plot, which could shape expectations for the US Fed interest rate trajectory through 2025 and 2026.

Along with the Fed policy, the focus is on the US GDP and inflation data, which will be released later this week.

Manav Modi, a commodity research analyst at Motilal Oswal Financial Services, pointed out that the US Fed’s interest rate decision and updates on the interest rate path will be a key trigger for gold prices.

“In this meeting, along with interest change, the Fed’s updated economic projections and the dot plot, which could reshape expectations for rate trajectory through 2025 and 2026, will be in focus,” Modi said.

“The US retail sales increased more than expected in November, adding to warmer inflation readings in recent months and suggesting that the Fed could pause rate cuts in January while industrial production was steady. Also, as per reports, Israel met Qatar mediators to discuss the Gaza ceasefire, with Hamas weighing on sentiment. Focus this week will be on US housing, GDP and inflation data,” Modi observed.

Experts’ strategy for MCX Gold

Gold prices could experience volatility this week due to the FOMC meeting, GDP and inflation data.

Manoj Kumar Jain of Prithvifinmart Commodity Research suggests buying gold on dips around ₹76,500 with a stop loss of ₹76,200 for the target of ₹77,200.

“Gold has support at $2,646-2,632, while resistance at $2,678-2,694 per troy ounce and silver has support at $30.64-30.40, while resistance is at $31.20-31.50 per troy ounce in today’s session. On the MCX, gold has support at ₹76,480-76,200 and resistance at ₹77,200-77,550, while silver has support at ₹90,100-89,500 and resistance at ₹91,650-92,400,” said Jain.

Rahul Kalantri, VP of commodities at Mehta Equities, observed that gold has support at $2,630-2,615 and resistance at $2,664-2,680. Silver has support at $30.20-29.90 and resistance at $30.70-30.85.

On the domestic front, gold has support at ₹76,560-76,340, while resistance is at ₹77,050-77,240. Silver has support at ₹90,050-89,480 while resistance at ₹91,430-92,040, said Kalantri.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.