Gold price today Highlights: Gold rate today declined around 1% on MCX on Wednesday on profit booking but remained on course for an exceptional year posting stellar retuns of 65%, highest since 1979.
MCX gold rate was down a little over 1% or ₹1,550 to ₹1,35,116 per 10 gram. Meanwhile, Spot gold slipped 0.3% to $4,334.20 an ounce as of 0032 GMT, after touching a record high of $4,549.71 on Friday. US gold futures for February delivery also declined 1% to $4,346.50 an ounce.
Gold prices were supported by a combination of persistent geopolitical risks, a softer US interest rate environment, sustained purchases by central banks, and rising inflows into gold-backed exchange-traded funds. Geopolitical uncertainty also played a central role in boosting safe-haven demand. Lingering doubts over a Russia–Ukraine peace deal, escalating tensions in the Middle East, and strained relations between the United States and Venezuela all contributed to stronger investor appetite for gold and silver through the year.
Renisha Chainani, Head of Research at Augmont, said gold prices are likely to consolidate within a defined range after the recent volatility. She expects gold to consolidate between $4320, which is roughly ₹1,34,000/10 gm, and $4420, around ₹1,37,000, following the sharp rally and subsequent sell-off witnessed this week.
US Fed minutes
Adding to the bullish backdrop, minutes from the Federal Reserve’s December policy meeting, released on Tuesday, showed that most officials felt additional rate cuts could be warranted if inflation continues to ease. However, policymakers remained divided over the timing and magnitude of any future reductions.
It also showed policymakers agreed to cut interest rates only after a closely balanced debate over risks to the US economy. The Fed is scheduled to meet again on January 27–28, with markets currently expecting interest rates to remain unchanged.
Even some of those who supported the rate cut acknowledged “the decision was finely balanced or that they could have supported keeping the target range unchanged,” given the different risks facing the U.S. economy, according to the minutes released on Tuesday.
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