Fed rate cut bets push gold prices past Rs 1.09 lakh to fresh all-time high. Will hopes drive more gains?
Meanwhile, silver December futures on MCX were also firm near their higher level as the same opened at Rs 1,25,591/kg today, higher by merely Rs 20 or 02%.
On Tuesday, spot gold in the international markets hit their all-time high of $3,646.53/oz.
On Monday, gold and silver settled on a positive note in the domestic and international markets. Gold October futures contract settled at Rs 1,08,518 per 10 grams with a gain of 0.73% and silver December futures contract settled at Rs 1,25,571 per kilogram with a gain of 0.70%.
Gold prices surged to a record high and silver prices also hit a fresh 14-year high in the international markets.
The U.S. job data released last week was disappointing and increased the possibility of more aggressive Fed rate cuts. The U.S. non-farm employment rose just 22,000 against the expected jobs of 75,000. The U.S. unemployment rate also surged to 4.3% in August month.“Increasing pressure on the U.S. job markets is giving a signal for aggressive Fed rate cuts this year. Market is expecting 75 basis point cuts by the end of this year,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.The dollar index slipped to a 6-week low and the U.S. 10-year bond yields also plunged and supporting gold and silver prices. Today, the US Dollar Index, DXY, was hovering near the 97.37 mark, falling 0.09 or 0.09%.
“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, volatility in the rupee and ahead of the U.S. inflation data and gold are expected to trade in the range of $3,510-3,770 per troy ounce and silver is expected to trade in the range of $39.10-44.00 per troy ounce this week. Gold has support at $3650-3634, while resistance at $3692-3710 per troy ounce and silver has support at $41.64-41.30, while resistance is at $42.20-42.50 per troy ounce in today’s session,” he added.
“Gold took positive cues with gains of $28 at $3615 on COMEX and ₹300 at ₹1,08,000 on MCX, after last week’s weak Non-Farm Payrolls data strengthened expectations of a Fed rate cut in the upcoming meeting. Tariff uncertainties along with firm rate cut expectations continue to provide strong support to Gold,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, at LKP Securities.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 1,08,000-1,07,440 and resistance at Rs 1,09,100-1,09,650
- Silver has support at Rs 1,24,800-1,23,500 and resistance at Rs 1,26,600-1,27,700
Jain suggests buying silver around Rs 1,24,800 with a stop loss of Rs 1,23,500 for a target of Rs 1,26,600-1,27,500.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,936/8 grams while pure gold (24 carat) prices stand at Rs 61,728/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,016/8 grams while pure gold (24 carat) prices stand at Rs 60,768/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,856/8 grams while pure gold (24 carat) prices stand at Rs 60,584/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,888/8 grams while pure gold (24 carat) prices stand at Rs 60,624/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)