Gold price today: Rates rise ahead of US inflation prints; experts reveal strategy for MCX Gold

Gold price today: Gold rates climbed in early deals in the domestic futures market on Wednesday morning as investors await the August US Consumer Price Index (CPI) data, due later today.

Gold prices gained in international markets, too, as the dollar index, which measures the US currency against six major global currencies, eased. Since gold is priced in dollars, weakness in the US currency makes it cheaper in other currencies, raising its demand.

Apart from the US Consumer Price Index (CPI) data, investors also focus on the Producer Price Index reading and initial jobless claims on Thursday. These macro numbers are crucial as they will influence the size and extent of the US Fed rate cut, which is expected to start this month. The US Federal Open Market Committee (FOMC) will convene on September 17-18 to decide on the policy rates.

Rate cuts, geopolitical developments, and the US presidential election are the key triggers that will influence gold prices in the coming months. The yellow metal is witnessing volatility at present due to the dollar’s movement and speculations about the size of the Fed rate cut.

MCX Gold for October 4 delivery traded 0.16 per cent higher at ₹72,030 per 10 grams around 9:20 am.

What should be the strategy for MCX Gold today?

Experts expect gold prices to remain volatile ahead of the US CPI data. They observe that MCX Gold is witnessing a time correction, and a violation of the support or resistance zone will lead to fresh momentum.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold prices to remain volatile this week amid volatility in the dollar index and ahead of the US inflation data. He, however, believes gold may hold its support level of $2,464 per troy ounce on a weekly closing basis.

“Gold has support at $2,522-2,510, while resistance at $2,558-2,572 per troy ounce. On the MCX, gold has support at ₹71,700-71,440 and resistance at ₹72,200-72,500,” said Jain.

Aiyub Yacoobali, Chairman and Managing Director of South Gujarat Shares And Sharebrokers, observed that MCX Gold is witnessing time correction.

“On the downside, ₹71,174 – 70,736 may act as a major support zone. Fresh supply is possible only below this zone. Whereas fresh upward momentum possible only if MCX Gold manages to trade above ₹72,062 – 72,349 zone,” said Yacoobali.

According to brokerage firm Motilal Oswal Financial Services, Gold is expected to trade within a range of ₹71,500 – 72,500, with support at ₹71,750-71,500 and resistance at ₹72,200-72,500.

Brokerage firm SMC Global Securities expects gold to trade in the range of ₹71,700-72,300, with sideways to bullish bias. It pointed out that the holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.20 per cent to 864.46 tonnes on Tuesday.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.