Gold rate today: Gold rate on MCX traded higher on Wednesday, recouping sharp losses in previous session, tracking gains in international bullion prices ahead of the release of key economic data in the US.

MCX gold contracts for August delivery traded 0.42% higher at ₹68,801 per 10 grams, while MCX silver contracts for September delivery were up 0.21% to ₹85100.00 per kg.

In the international commodity market, gold prices inched higher with investors awaiting US economic data that could influence the Federal Reserve’s rate-cut timeline, Reuters reported. Spot gold was up 0.3% at $2,416.39 per ounce, while US gold futures gained 0.4% to $2,416.10.

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Gold rates saw a sharp fall in the previous session after Finance Minister Nirmala Sitharaman, in the Union Budget 2024, announced a cut in custom duty on gold and silver to 6%.

“The cut in custom duties will ultimately support physical demand for gold in the domestic markets. The trend in gold prices remains positive aided by weakness in rupee, global geopolitical tensions, continuous buying by global central banks and ETF inflows,” said Ajay Kedia, Director, Kedia Advisory.

According to Kedia, MCX gold may find support at ₹67,700 level, while resistance is seen at ₹69,600 level.

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In the international markets, comex gold prices held above $2,400 as the market awaited clarity on the US Federal Reserve’s first interest rate cut.

“Today, Comex Gold continues to hold gains, trading above $2,410 per ounce amid anticipation of upcoming US data releases that could support Fed rate cuts. US personal consumption expenditures, Fed’s preferred underlying inflation measure, due Friday, is expected to show easing price pressures in June,” said Kaynat Chainwala, AVP-Commodity Research, Kotak Securities.

According to the CME FedWatch Tool, traders see a 96% chance of a 25 basis points rate cut in September.

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Further, Chainwala believes a sharp reduction in India's import duty on gold and silver from 15% to 6% is likely to boost retail demand. The Flash PMI data from major global economies will be closely watched for early insights into business activity in July.

Meanwhile, spot silver prices rose 0.2% to $29.27 per ounce. Gains in silver prices comes amid increasing industrial demand for the white metal. On MCX, silver rates were trading above ₹85,000 level.

“Support for MCX silver is placed at ₹83,800 level, while it may face resistance at ₹87,800 level,” Kedia said.

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