Gold prices edge higher, silver at new all-time high of Rs 1,28,294/kg amid rate cut hopes. How to trade now?
Gold October futures prices opened higher by Rs 539 or 0.5% at Rs 1,09,520/10 grams on the MCX in Friday’s session, supported by expectations of a U.S. Federal Reserve rate cut next week.
Meanwhile, silver December futures hit another lifetime high of Rs 1,28,294/kg, rising nearly 1%.
Gold prices in the international markets rose on Friday and were headed for a fourth consecutive weekly gain, as fears of a weakening U.S. labour market eclipsed inflation concerns ahead of an expected Federal Reserve rate cut next week.
Spot gold rose 0.4% to $3,647.76 per ounce as of 0211 GMT. Bullion gained 1.7% so far this week. Meanwhile, U.S. gold futures for December delivery were up 0.4% at $3,686.50.
On Thursday, gold and silver settled on a mixed note in the domestic and international markets. Gold October futures contract settled at Rs 1,08,981 per 10 grams with a loss of 0.005% while silver December futures contract settled at Rs 1,26,938 per kilogram with a gain of 1.40%.Gold and silver traded steady ahead of the FOMC monetary policy meetings next week. The U.S. inflation data was largely as per market expectations and endorsed September rate cuts.
The U.S. CPI came up at 0.4% in August against expectations of 0.3% but was well above the July reading of 0.2%. CPI on a yearly basis came up at 2.9% against the July reading of 2.7%. The U.S. unemployment claims surged once again and were recorded at 2,63,000 against expectations of 2,35,000.
The Fed is widely anticipated to lower its key interest rate by 25 basis points on Wednesday, with a slim possibility of a 50-basis-point reduction, according to the CME FedWatch tool.
Non-yielding bullion, often considered a hedge against inflation and economic uncertainties, tends to perform well in a low-interest-rate environment.
“Disappointing job market could prompt the U.S. Fed for a rate cut in next week’s policy meetings, but higher inflation is a worry for the U.S. Fed. The U.S. 10-year bond yield slipped below 4.0% for the first time since May 2025 and could also support gold and silver prices,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Today, the U.S. Dollar Index, DXY, was hovering near the 97.65 mark, gaining 0.12 or 0.12%.
“We expect gold and silver prices to remain volatile in today’s session amid volatility in the dollar index and geopolitical tensions, and gold is expected to trade in the range of $3,622-3,717 per troy ounce and silver is expected to trade in the range of $41.40-42.80 per troy ounce,” he added.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
Gold has support at Rs 1,08,550-1,08,000 and resistance at Rs 1,09,380-1,09,800.
Silver has support at Rs 1,26,000-1,24,800 and resistance at Rs 1,28,000-1,29,200.
Jain suggests buying silver on dips around Rs 1,26,000 with a stop loss of Rs 1,24,800 for a target of Rs 1,27,400-1,28,200.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,392/8 grams, while pure gold (24 carat) prices stand at Rs 61,144/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 56,952/8 grams, while pure gold (24 carat) prices stand at Rs 60,744/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,776/8 grams, while pure gold (24 carat) prices stand at Rs 60,568/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,904/8 grams, while pure gold (24 carat) prices stand at Rs 60,680/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)