Gold Price Today: Gold gains Rs 1,300/10 gm post Fed rate cut; silver up Rs 1,700/kg

Since the US Fed had cut rates by 50 bps, Gold October Futures have gained Rs 1,200 per 10 gram. Today, it opened flat at Rs 74,370 per 10 gram. Silver December futures contracts are up by Rs 1,700/kg in the same time period and have opened 0.88% up today at Rs 90,016/kg.

On Monday, gold futures reached a new record high in the international markets, closing just below $2,660 as investors reacted to the Federal Reserve’s recent rate cut. In the domestic market, Gold October Futures contract settled at Rs 74,295 per 10 grams with a gain of 0.34% while Silver December Futures contract settled at Rs 89,231 per kilogram with a loss of 1%.

The Fed’s unexpected 50-basis point cut has fueled speculation of further reductions, with markets split between expecting another 50-point or a 25-point cut in November. The likelihood of a 50-point cut has risen sharply, now sitting at 54.8%, up from 13.1% a month ago.

“Fed officials have hinted at cuts totaling up to 1.25% by year-end. Traders are pricing in a Fed funds rate range of 4% to 4.25% by December, a significant shift from the aggressive hikes since 2022,” said Neha Qureshi Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.

All eyes are on the upcoming PCE report, which is expected to show a further drop in inflation, supporting the Fed’s goal of reaching a 2% target.

Today, the US Dollar Index, DXY, was hovering near the 100.95 mark, rising 0.10 or 0.09%.“The daily chart of MCX Gold October futures reveals a robust uptrend, with prices moving above an ascending trendline and consistently forming higher highs and higher lows. The price is also trading above the 21-day Exponential Moving Average (EMA), highlighting the ongoing upward trend. Additionally, the RSI shows positive divergence, reinforcing the bullish outlook. Key resistance levels are located at 74,440 and 74,730, while important support zones are marked at 73,600 and 73,200,” Qureshi added.

Intraday Trading Strategy by Neha Qureshi:

• Buy MCX October gold futures at Rs 74,000 with a stop loss of Rs 73,600 and a price target of Rs 74730
• Buy MCX December silver futures at Rs 90,000 with a stop loss of Rs 89,000 and a price target of Rs 92,000

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