India Gold price today: Gold keeps rallying, according to MCX data

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

Gold price stood at 63,412 Indian Rupees (INR) per 10 grams, up INR 446 compared with the INR 62,966 it cost on Wednesday.

As for futures contracts, Gold prices decreased to INR 63,522 per 10 gms from INR 63,678 per 10 gms.

Prices for Silver futures contracts decreased to INR 75,374 per kg from INR 75,647 per kg.

Global Market Movers: Comex Gold price capitalizes on dovish Fed pivot

• Comex Gold price is sitting close to a three-week high of $2,089, as a sharper-than-projected decline in the United States core PCE price index data has fuelled bets in favor of early rate cuts by the Fed.
• The US core PCE price index data softened to 3.2% vs. the estimates of 3.3% and the former reading of 3.5%. On a monthly basis, the underlying inflation data grew slightly by 0.1% while market participants projected a steady growth of 0.2%. 
• It is worth noting that the Fed forecasted core PCE price index at 3.2% by the year-end in its Summary of Projections (SOP) released last week. This indicates that the Fed has achieved its inflation target of 2023.
• This greater-than-projected decline in the Fed’s preferred inflation tool may force policymakers to endorse rate cuts sooner than previously thought.
• As per the CME Fedwatch tool, market participants are pricing in a more than 75% odds chance of an interest rate cut in March.
• Till now, Fed policymakers have been pushing back rate cut expectations, citing the need for a restrictive interest rate policy for a longer period to ensure the achievement of price stability.
• A significant decline in the US inflation data is setting a better start for the Fed for 2024, which would allow them to achieve a soft landing for the economy. Such a soft landing would enable price stability without triggering a recession.
• Apart from the US core PCE price index data, investors also focused on the Durable Goods Orders for November, released on Friday.
• New orders for durable goods rose at a stronger pace of 5.4% against expectations of 2.2%. In October, orders of durable goods contracted by 5.1%.
• Subsiding inflation in the US economy has boosted consumer confidence. The Michigan Consumer Sentiment index for December, released last week, rose to 69.7, against projections and the former reading of 69.4.
• Deepening rate cut expectations by the Fed have weighed heavily on the US Dollar and Treasury yields.
• Lower interest rates, or their expectation, tend to reduce foreign capital inflows negatively impacting a currency.
• The US Dollar Index hovers near a five-month low below 101.50 and 10-year US Treasury yields have dropped further to near 3.87%.
• This week, the economic calendar will be light due to it being a holiday week while the second-tier weekly jobless claims data will be in focus. 

(An automation tool was used in creating this post.)