Gold prices rise to 2-week high at Rs 1,00,950/10 grams as Trump fires Fed Governor. More safe haven buying ahead?
Gold October futures prices on MCX rose by Rs 326, or 0.32%, to Rs 1,00,950 per 10 grams, marking a new two-week high. The gains were driven by concerns over the Fed’s independence after US President Donald Trump fired Federal Reserve Governor Lisa Cook over mortgage fraud accusations.
Additionally, silver September contracts were resilient, trading at Rs 1,16,284 per kg, up Rs 334 or 0.29%.
On Monday, gold and silver settled mixed in domestic markets and slightly weaker in international markets. The gold October futures contract closed at Rs 1,00,624 per 10 grams, gaining 0.24%, while silver September futures closed at Rs 1,15,950 per kg, down 0.25%.
Prices remained range-bound, largely factoring in expected Fed rate cuts in the next monetary policy meeting, as signaled by Fed Chair Jerome Powell last week.
“Gold and silver are holding key support levels amid geopolitical tensions and safe-haven demand due to US trade tariff uncertainty. Weakness in the rupee is also supporting domestic prices,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.
The US Dollar Index (DXY) hovered near 98.40, down 0.03 points or 0.03%.“We expect gold and silver to remain volatile this week amid fluctuations in the dollar index, rupee movements, and updates on the Russia-Ukraine peace deal. Gold is expected to trade in the $3,340–3,474 per troy ounce range, while silver is likely in the $37.70–40.40 range,” he added.Rahul Kalantri, VP Commodities at Mehta Equities, noted, “The gold jump followed President Trump’s firing of Fed Governor Lisa Cook. This raised concerns about the Fed’s independence, pushing investors toward safe-haven assets.”Fed Chair Jerome Powell also suggested a possible rate cut in September, although inflation remains a concern. Markets now assign an 83% probability of a small cut. Attention is on Friday’s inflation data for further guidance.
How to trade gold?
- Manoj Kumar Jain: Gold support Rs 1,00,300–99,950, resistance Rs 1,00,850–1,01,200. Buy around Rs 1,00,400 with a stop loss at Rs 1,00,040 for a target of Rs 1,01,100.
- Silver support Rs 1,15,115–1,14,400, resistance Rs 1,16,650–1,18,000. Buy around Rs 1,15,500 with stop loss Rs 1,14,400 for a target of Rs 1,16,850–1,17,700.
Rahul Kalantri: Gold support Rs 1,00,240–99,850, resistance Rs 1,00,950–1,01,150. Silver support Rs 1,15,150–1,14,350, resistance Rs 1,16,750–1,17,250.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 58,496/8 grams while pure gold (24 carat) prices stand at Rs 62,384/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,928/8 grams while pure gold (24 carat) prices stand at Rs 61,792/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,840/8 grams while pure gold (24 carat) prices stand at Rs 60,624/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,968/8 grams while pure gold (24 carat) prices stand at Rs 56,968/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)