This follows a record high of $2,449.89 reached on Monday, May 20.
In the United States, gold futures saw a slight decline of 0.3%, settling at $2,419.00.
In India, gold futures maturing on June 5, 2024 were trading at ₹73,945 per 10 grams on the Multi Commodity Exchange (MCX).
This reflects a slight decline of ₹76 or 0.10% from the previous close of ₹74,021.
Gold prices have stabilized near their record high, driven by safe-haven demand and expectations of U.S. interest rate cuts despite a firm dollar, according to Saish Sandeep Sawant Dssais, an analyst at Angel One.
“Concerns over rising U.S. government debt and the Federal Reserve’s attempts to achieve a soft economic landing have driven investors into gold,” he said.
Here is an overview of the key factors that could impact the market:
Federal Reserve Meeting Minutes
The main objective of investors this Wednesday, May 22 will be the publication of the minutes of the last policy meeting of the Federal Reserve.
Market participants are eagerly awaiting further signals on the timing of possible US interest rate cuts.
Any indication of a change in monetary policy could have a significant impact on gold prices, as lower interest rates tend to make gold more attractive as a non-yielding asset.
Global economic factors
In China, efforts to stabilize the real estate sector and significant bullion purchases in early 2024 have supported gold’s appeal.
These factors, combined with global geopolitical tensions and inflation trends, are crucial in shaping current gold market dynamics.
Technical analysis
Rahul Kalantri, vice president of commodities at Mehta Equities, noted that gold is in a long-term uptrend amid slowing US inflation and robust central bank purchases.
However, recent unfavorable comments from U.S. Fed officials regarding interest rate cuts have triggered some profit-taking.
Kalantri expects gold prices to remain volatile ahead of the Fed meeting minutes.
Key Levels to Watch (According to Rahul Kalantri, Vice President of Commodities at Mehta Equities)
Support Levels
Global: $2,398 to $2,382 per ounce
Domestic: ₹73,780 to ₹73,550 for 10 grams
Resistance Levels
Global: $2,438 to $2,456 per ounce
Domestic: ₹74,380 to ₹74,650 for 10 grams
Conclusion
Gold price movements today will largely depend on the Federal Reserve meeting minutes and market reactions to any new policy signals.
Investors should also keep an eye on broader economic indicators and geopolitical developments.
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