Gold Zooms Near $2320 Mark As Momentum Sustains

Published on Apr 04, 2024 13:14

COMEX Gold futures scaled up impressively yesterday, jumping 1.50% to hit fresh highs above $2320 per ounce as a firm momentum in global crude oil prices boosted the commodity and the break above $2300 per ounce mark pushed it into fresh record territory. The metal eased a bit from these levels though as markets remained focused on the US interest rate outlook. The US Fed Chair Jerome Powell has stated that Fed does not expect that it will be appropriate to lower its policy rate until it has greater confidence that inflation is moving sustainably toward 2%.

Atlanta Fed President Bostic also highlighted the bumpy nature of inflation progress and noted that it will likely be appropriate for us to lower interest rates at the end of this year. The strength in US labor markets further boosted this narrative as US March ADP employment data showed a rise of 184,000 while the Feb ADP was revised to 155,000 from the previously reported 140,000. Gold is pausing following these cues and currently quotes flat around $2315 per ounce. MCX Gold futures are trading at Rs 69768 per 10 grams, down marginally on the day after hitting a high of Rs 69908 per 10 grams in intraday moves.