Gold trades flat at Rs 1,12,600/10 gms ahead of global economic data. Will tariffs, Fed moves push it higher?
However, silver December futures contracts on MCX opened at Rs 1,36,725/kg today, lower by Rs 331 or 0.24%.
In the international market, gold prices edged lower on Friday after stronger-than-expected U.S. economic data cast doubt on the Federal Reserve’s rate cut outlook, bolstering the dollar ahead of a key U.S. inflation report due later in the day.
Spot gold declined 0.2% to $3,741.21 per ounce as of 0147 GMT, though the metal was up 1.6% so far this week.
On Thursday, gold and silver settled on a positive note in the domestic and international markets. Gold October futures contract settled at Rs 1,12,629 per 10 grams with a gain of 0.07% and silver December futures contract settled at Rs 1,37,056 per kilogram with a gain of 2.28%.
Gold and silver show very high price volatility and gained again despite an upward revision in the U.S. second-quarter GDP to 3.8% and strength in the dollar index. The U.S. jobless claims also dropped last week to 2,18,000 against expected claims of 2,33,000, but were unable to stop the gold and silver rally.Trump on Thursday unleashed a fresh round of punishing tariffs on a broad range of imported goods starting October 1.Meanwhile, data released on Thursday showed weekly U.S. jobless claims declined. The second-quarter GDP grew faster than estimated on strong consumer spending and business investment.
“Gold prices are sustaining above $3,700 per troy ounce and silver prices crossed $45 per troy ounce on a closing basis. The gold and silver ratio gives a fresh breakout and slips below 84 and indicating more strength in the silver prices,” noted Manoj Kumar Jain of Prithvifinmart Commodity Research.
Jain added that silver is likely to test its previous higher levels of 2011 and 1978 in the international markets in the upcoming sessions.
The U.S. dollar index hovered near a three-week high, making greenback-priced bullion more expensive for overseas buyers. Today, the US Dollar Index, DXY, was hovering near the 98.39 mark, gaining 0.16 or 0.16%.
Meanwhile, Fed policymaker Stephen Miran advocated for aggressive rate cuts to shield the labour market, downplaying inflation risks from tariffs.
Safe-haven bullion tends to perform well in a low-interest-rate environment.
“We expect gold and silver prices to remain volatile in today’s session amid volatility in the dollar index, volatility in the global financial markets and ahead of the U.S. core PCE price index data and gold are expected to trade in the range of $3,717-3,810 per troy ounce and silver is expected to trade in the range of $44.40-45.80 per troy ounce in today’s session,” he added.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 1,12,100-1,11,660 and resistance at Rs 1,13,000-1,13,550
- Silver has support at Rs 1,35,800-1,34,400 and resistance at Rs 1,38,350-1,40,000.
Jain suggests buying gold around Rs 1,12,000 with a stop loss of Rs 1,11,440 for a target of Rs 1,13,300 and also suggests buying silver between Rs 1,37,000-1,35,800 with a stop loss of Rs 1,34,400 for a target of Rs 1,38,800-1,40,000.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 84,768/8 grams while pure gold (24 carat) prices stand at Rs 91,080/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 84,232/8 grams while pure gold (24 carat) prices stand at Rs 90,472/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 83,984/8 grams while pure gold (24 carat) prices stand at Rs 90,256/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 84,448/8 grams while pure gold (24 carat) prices stand at Rs 90,720/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)