India Gold price today: Gold extends the advance, according to MCX data

Gold prices rose in India on Tuesday, according to data from India's Multi Commodity Exchange (MCX).

Gold price stood at 61,088 Indian Rupees (INR) per 10 grams, up INR 304 compared with the INR 60,784 it cost on Monday.

As for futures contracts, Gold prices increased to INR 60,956 per 10 gms from INR 60,657 per 10 gms.

Prices for Silver futures contracts decreased to INR 72,788 per kg from INR 72,644 per kg.

Global Market Movers: Comex Gold price jumps on dovish Fed expectations

• The US Dollar selling remains unabated in the wake of dovish Federal Reserve expectations and assisted the Comex Gold price to regain strong positive traction on Tuesday.
• Investors now seem convinced that the Fed has completed its interest rate-hiking cycle and are looking for cues on when the central bank could begin easing its monetary policy.
• The rate-sensitive 2-year US government bond yield remains below the current 5.25-to-5.50% Fed funds target, suggesting that momentum in favor of rate cuts is building.
• The CME’s Fedwatch tool points to a roughly 30% chance that the Fed will start cutting rates as soon as March 2024 and a nearly 100 bps of cumulative easing by the year-end.
• The benchmark US 10-year Treasury yield drops to a fresh two-month low and undermines USD, offsetting the upbeat market mood and benefitting the non-yielding yellow metal.
• Investors turned optimistic after  Chinese officials vowed to roll out more policy support for the country’s beleaguered real estate sector and drive stronger momentum for growth.
• China’s new finance minister Lan Fo’an said that the country would boost budget spending to support the post-pandemic recovery in the world’s second-largest economy.
• Fed officials, meanwhile, have not ruled out the possibility that more interest rate hikes could be needed should a change in economic data require it.
• Richmond Fed President Thomas Barkin said on Monday that inflation is likely to remain stubborn and force the central bank to keep rates higher for longer than investors currently anticipate.
• This, in turn, could act as a headwind for the precious metal as traders look to the FOMC minutes for fresh cues about the Fed's future policy action and some meaningful impetus.