Gold rate today: Following the market buzz on a steeper US Fed rate cut, the spot gold price climbed to a new peak of $2,589 per ounce, and the Comex gold price climbed to a new peak of $2,616.50 per troy ounce on Monday dealing. In the early morning session on Tuesday, the spot gold price oscillated around $2,585 per ounce. However, at the Multi Commodity Exchange (MCX), the gold rate today hit a two-month high.

According to the commodity market experts, gold rates today are in an uptrend as the market is expecting a 50 bps US Fed rate cut, which has put the US dollar and US Treasury yield under pressure. They said that if the American central bank cuts interest rates by 50 bps in the US Fed meeting, we can expect a sharp upside in gold prices. However, they predicted sharp selling if there will be a 25 bps US Fed rate cut.

US Fed rate cut in focus

Speaking on the gold price outlook ahead of the US Fed meeting outcome, Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Market is expecting a 50 bps US Fed rate cut, which has put the US dollar rate and the US Treasury yield under pressure. Investors are now in await and watch condition and any hint of a steeper US Fed rate cut during the US Fed meeting would be enough to fuel gold prices.”

Expecting the gold prices to trade sideways ahead of the US Fed meeting outcome, IG market strategist Yeap Jun Rong said, "The rally in gold prices has taken a breather in today's session," adding that after recent gains driven by expectations of a more aggressive rate cut, there's now some caution as investors await further clarity from policymakers.

Gold rate today: Important levels to watch

“The spot gold price has made a strong base at $2,560 per ounce and it is expected to touch $2,640 per ounce mark if the US Fed announced a rate cut of 50 bps. MCX gold rates have strong support at ₹72,000 per 10 gm whereas it is expected to touch ₹74,000 after the US Fed rate cut on the expected lines,” said Anuj Gupta of HDFC Securities.

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