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Gold Price Today: Yellow metal gains by Rs 1,500/10 gm, while silver up by Rs 6,000/kg

Gold October futures contracts at MCX opened flat on Tuesday at Rs 73,428 per 10 gram, which is down by 0.09% or Rs 68 while silver December futures contracts were trading at Rs 89,653/kg, up by 0.05% or Rs 44.

Despite some profit booking in Monday’s session, the prices of gold have gained Rs 1,500/10 gm while silver has gained Rs 6,000 per kilogram in the last one week.

In the international markets, gold prices held steady on Tuesday to hover near record highs scaled in the previous session, as markets anticipate the beginning of a U.S. easing cycle, with expectations that it might start with an outsized rate cut.

Spot gold was flat at $2,582.84 per ounce, as of 0020 GMT. Bullion rose to a record high of $2,589.59 on Monday. U.S. gold futures were also steady at $2,609.90.

Gold is up more than 20% this year, supported as confidence has grown the US central bank is about to cut interest rates for the first time since 2020. Robust over-the-counter purchases and strong haven demand amid conflicts in the Middle East and Ukraine also helped the advance.

All the attention will now turn towards the US Federal Reserve this week where they are expected to announce at least a 25-basis-point cut to interest rates at the conclusion of its September policy meeting on Wednesday.“Opinions are split on whether the Fed will cut rates by 0.25% or 0.5%, but lower rates generally support gold, which doesn’t pay interest but becomes more attractive in a low-rate environment,” said Neha Qureshi Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.Today, the US Dollar Index, DXY, was hovering near the 103.22 mark, falling 1.20 or 0.15%.

“The upcoming US presidential election adds political pressure, with some senators calling for aggressive rate cuts to protect the economy. Gold has already surged over 25% this year due to expectations of rate cuts, central-bank buying, geopolitical tensions, and increased interest from retail investors,” Qureshi added.

Qureshi stated that on the daily chart, MCX Gold October futures are trading above a rising trend line, forming a pattern of higher highs and higher lows, signaling bullish momentum. The price is also trading above the 21-day EMA, indicating strong upward momentum. The RSI shows a positive divergence, reinforcing the bullish outlook. Key resistance levels are at 73,950 and 74,440, while support levels are at 73,080 and 72,600.

Intraday Trading Strategy by Neha Qureshi:

  • Buy MCX October gold futures at Rs 73,500 with a stop loss of Rs 73,000 and a price target of Rs 74,200.
  • Buy MCX December silver futures at Rs 89,600 with a stop loss of Rs 88,600 and a price target of Rs 91,600.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)