Gold Rate Today: Gold Surges to Record High Amid Expectations of June Fed Rate Cut

Investors have shown significant trust in the reports shared by the Federal Reserve about cutting their interest rates this year, and it was seen in Gold prices hitting a record high on Monday, 1st April 2024. This came even after the data showed some uptrend in the critical inflation report.

This time, gold has been a people’s favorite after the U.S. Central Bank hinted at easing its credit conditions. As per Bloomberg News, gold reached a record high of $2,256.44 per ounce (INR 1,88,189) on 1st April 2024.

On 29th March 2024, the PCE (personal consumption expenditure) index slightly rose in March compared to February. The U.S. Federal Reserve prefers this index to gauge inflation. Experts also stated that the report was in line with their expectations. Besides, it is also assumed that the decision makers will hit their long-term inflation target of 2%.

Few highlights:

• Gold rose to $2,256.44 per ounce (INR 1,88,189) on 1st April 2024.
• U.S. gold futures increased 1.7% to $2,275.70 an ounce (INR 189,765)
• Due to the dollar's 0.1% decline vs its competitors, gold became more attractive to holders of other currencies.
• The U.S. inflation data is as expected by the Federal Reserve Chair Jerome Powell.
• The Commerce Department's Bureau of Economic Analysis issued statistics on Friday that showed the PCE personal consumption expenditures price index expanded by 0.3% in February, a moderating factor in U.S. prices. 
• There is a 69% probability that the Federal Reserve will cut the rates in June.

In March, China's manufacturing activity grew for the first time in six months, providing policymakers with some respite even as the country's economy and confidence continue to be negatively impacted by the real estate crisis.

In India, the gold prices saw a surge on 31st March 2024. A minor correction was seen across the all-time high gold prices across cities. Even after this adjustment, the price remained close to Rs. 70,000 in many metropolitan cities of India.

Moreover, year-to-date, the 22-carat and 24-carat prices have surged by 7% each for 10 grams. It is also expected that the gold prices will see an overall increase in the coming fiscal year FY-25.

Gold Prices in Indian Cities

To Sum Up

Investors intently observe market dynamics as gold reaches new highs despite growing anticipation for a Federal Reserve rate drop in June. As players manage to alter monetary policies and their potential impacts, concerns about economic instability have led to a cautious viewpoint reflected in the price of precious metals.