Gold prices saw a sharp rebound today following early morning selling pressure on the US dollar. This surge came after a significant drop in gold prices on Monday. The Multi Commodity Exchange (MCX) gold futures contract for April 2025 opened with an upside gap at ₹85,603 per 10 grams and quickly touched an intraday high of ₹85,690. In the international market, the spot gold price stands at $2,896, while the COMEX gold price is at $2,899 per troy ounce.
Gold Price Movements and Influences
US Dollar Impact: The US dollar witnessed a correction in the early morning session, which played a crucial role in stimulating demand for spot gold. Experts note that gold prices today are largely following the movement of the US dollar.
US Economic Data: The disappointing US nonfarm payroll report, with 151K jobs added (below the forecast of 160K), contributed to market uncertainty. However, it wasn’t as bleak as initially feared, and the unemployment rate increased slightly to 4.1% in March from 4% in January. This weak economic data, alongside the Federal Reserve’s stance on the economy, has added to the volatility in gold prices.
Fed Chair Powell’s Remarks: Fed Chairman Jerome Powell’s optimistic outlook on the US economy, despite uncertainties, has tempered expectations for immediate rate cuts. This dovish stance has weighed on the US dollar, benefiting gold in the short term.
Gold Price Outlook
Range-Bound Expectations: According to Praveen Singh, Associate VP at Mirae Asset Sharekhan, gold is expected to trade within a range, with a slight downward bias due to a stronger US dollar and Powell’s reassurances on the economic outlook.
Key Data to Watch: The upcoming US CPI and PPI data, scheduled for release later this week, are expected to be crucial triggers for gold price movements. These reports could offer insights into inflation trends, which will significantly impact the market sentiment.
Conclusion
Gold prices today are benefiting from a weakening US dollar and soft US economic data, though market analysts suggest that the outlook for gold remains range-bound. With upcoming US economic data on the horizon, gold prices are likely to fluctuate in response to new market signals. Investors are advised to monitor the US CPI and PPI reports closely to gauge further price movements in the precious metal.
The information provided here is for educational purposes only and reflects the views of individual analysts or broking firms. Investors should consult certified experts before making investment decisions.
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