Gold price today: Gold rates surged nearly 1 per cent in the domestic futures market during Wednesday’s morning session as investors awaited November US inflation data to get cues on the US Federal Reserve’s interest rate path. Escalating geopolitical tensions and healthy demand from the domestic spot market also underpinned the yellow metal. MCX Gold for February 5 expiry traded 0.70 per cent higher at ₹78885 per 10 grams around 9:15 AM.
Gold prices in international markets hit a two-week high on Wednesday, ahead of the release of the US Consumer Price Index (CPI) data later in the day. The Producer Price Index (PPI) data, due on Thursday, is also in focus.
Experts expect the November CPI to come at 2.7 per cent against 2.6 per cent recorded in the previous month. November PPI may come at 2.5 per cent compared to 2.4 per cent in October.
Both are key macroeconomic prints that can influence the US Fed’s monetary policy decision on December 18.
Most economists and market participants expect the US Fed to cut rates by 25 bps next week.
According to a Reuters poll of economists, the US Fed is likely to cut interest rates by 25 basis points on December 18. However, the Fed may take a pause in late January amid concerns over inflationary risks.
