Gold price today: How to trade gold as US dollar surges to 52-wk highs?
Gold prices rise over 1% due to disappointing Chinese data and a strong US dollar, with traders eyeing key levels and global economic factors.
Gold price today: How to trade gold as US dollar surges to 52-wk highs?
Gold prices today have fiercely risen with the strengthening of the US dollar. Gold surged by more than 1% on January 2 due to new fund flows and disappointing economic data from China. The gold ranged between $2'621 to $2'661, where spot gold closed the opportunity at $2'656, up 1.2% on the session. At the same time, the MCX Gold February contract jumped 1.07% to Rs 77,719.
Data showed China's manufacturing PMI was weaker than expected, increasing pressure on the global economy. While the figures out of China and the Eurozone were disappointing, they added to safe-haven demand for gold, sending gold futures and gold commodity prices higher. Well, it appears the gold has held its ground in spite of the USD testing 52-weeks high.
Gold traders have to rely on a robust Gold trading strategy! Gold levels to watch are $2,633 (Rs 77,000), $2,600 (Rs 76,000) and $2,581 (Rs 75,500), with resistance at $2,664 (Rs 78,000) and $2,700 (Rs 79,000). If the metal retreats to these support levels, it may prove to be a buy as gold prices likely take aim for $2,700 in the absence of a rapid advance in US yields.
The important thing for Derivatives or Commodities Traders or Investors is to watch Global Economic Data. US Economic Data will be important in tracking gold. Further moves may be spurred by US data (ISM manufacturing, employment, etc.) Gold has done well, and it rallied 27 in 2024, its best performance since 2010. Due to worries over the Chinese economy, gold may continue to play catch-up in global fund flows.
Now, with a stronger greenback, gold could be feeling some pressure; however, with gold's ability to dig in its heels, that is a good sign for gold traders. "Gold trading under present market conditions will likely remain volatile, and a defined gold strategy incorporating dips would be prudent at this time horizon."
Indian Markets traded on MCX; gold will remain a key commodity to watch, and gold futures and spot prices open a trading opportunity for another week.
