MCX Gold futures open higher amid rate cut optimism, MCX crude trades lower on Wednesday

MCX Gold futures price in India rose marginally, tracking strength in international gold prices after the US dollar fell on hopes that the Federal Reserve could cut rates sooner than expected.

In morning trade, the gold futures contract expiring on August 5 was trading 0.2% higher at ₹72,519 per 10 grams.

Internationally, gold was trading at $2,367 per ounce, holding above the $2,350 level where it has seen support in the past and marginally above its 50-day moving average of $2,366 per ounce.

In key developments, data showed that the US economy added 206,00 jobs, which was in line with expectations, but the unemployment rate rose to 4.1%.

Following the data release, Federal Reserve Chairman Jerome Powell said that lowering inflation and cooling the labour market will reduce “elevated inflation”, which is not the only risk the US economy faces.

“Reducing policy restraint too late or too little could unduly weaken economic activity and employment,” he said.

The US Dollar Index fell marginally following Powell’s speech, trading 0.05% lower to 105.09.

Other commodities

In other commodities, crude oil futures on MCX fell 0.6% to ₹6,789 per barrel as concerns over the Beryl storm eased in the US, peace talks continued in the Middle East and weakening economic data signalled softness in the US economy.

Besides, demand in China has been weakening. A Bloomberg survey showed that only 86 tankers were headed to the country over the next three months, the lowest number since August 2022.

Oil prices also traded weak after Saudi and Russia both said they would increase output.

In other commodities on MCX, natural gas was trading 1.6% lower, while metals, copper, zinc, and lead were trading 0.1% to 0.3% lower.

The other precious metal, silver, was traded flat in the MCX morning trade.