Gold prices saw a notable uptick on Thursday, supported by a weaker US dollar following the release of the US Federal Reserve’s (FOMC) meeting minutes. The precious metal surged after the US Dollar Index slipped below the 107 mark, easing from its recent high.
Opening Price: Gold opened at ₹86,420 per 10 grams and reached an intraday high of ₹86,494.
Peak on Wednesday: Gold had hit a new high of ₹86,549 per 10 grams during Wednesday evening deals, though it retraced slightly due to some US dollar value buying before the market closed.
Market Insights
FOMC Minutes: The release of the FOMC meeting minutes hinted at the US Federal Reserve’s openness to more than one interest rate cut in 2025, contingent on inflation control. This stance pressured the US dollar and fueled gold buying across markets.
US Dollar: The US Dollar Index dropped below the 107 mark on Thursday morning, which diminished the appeal of the US dollar and led to a surge in gold buying. Experts point out that traders now expect at least one 25-basis-point rate cut and a 44% chance of an additional cut by December 2025.
Geopolitical Factors: Former President Trump’s comments on imposing new tariffs, including a 25% tariff on auto imports and tariffs on semiconductor and pharmaceutical products, have added uncertainty to the global market. As a result, gold is seen as a safe-haven investment amidst the ongoing trade tensions.
Market Outlook
Bullish Sentiment: Market analysts, including Paul Wong from Sprott Asset Management, expect the bullish trend in gold prices to continue due to persistent geopolitical risks and inflation concerns. Gold is expected to remain volatile, trading within the ₹84,500 to ₹87,500 range on MCX as markets await key signals from the upcoming Federal Reserve and RBI meeting minutes.
Price Support: According to Anuj Gupta from HDFC Securities, gold’s support remains strong above ₹85,500 per 10 grams, suggesting that the outlook for gold is positive as long as this level holds.
Overall, the gold market remains bullish in light of easing US dollar rates, global geopolitical risks, and expectations of a more dovish stance from the US Federal Reserve.
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