Gold rate today: Gold prices moved higher in the domestic futures market Monday morning, tracking positive global cues and the dollar’s weakness ahead of the US Fed policy outcome on Wednesday, September 18.
In international markets, spot gold prices jumped to a record high of $2,588.81 on Monday due to a softer dollar and expectations of a significant US Fed interest rate cut. Comex Gold also jumped to a 52-week high of $2,616 per troy ounce.
Investors’ focus is now on the Federal Reserve as speculation mounts regarding the magnitude of its interest rate cuts and the pace of further reductions. The market has discounted a 25 bps rate cut, but some experts believe the US central bank may announce a 50 bps cut this time.
According to Reuters, this would be the Fed’s first rate cut since 2020. Markets are currently pricing in a 59 per cent chance of a 50 bps cut on Wednesday, up from 43 per cent on Friday, according to the CME FedWatch tool.
MCX Gold traded 0.22 per cent higher at ₹73,680 per 10 grams around 10:30 am.
The US Fed rate cut is a crucial trigger for gold prices. Decreasing interest rates is considered negative for interest-bearing assets and positive for bullion, which is considered a store of value.
Expert strategy for MCX Gold
Rahul Kalantri, VP of commodities at Mehta Equities, expects gold and silver prices to remain buoyant in today’s session, supported by a soft dollar index, a rebound in crude oil prices, and a likelihood of maintaining their support levels of $2,550 and $30 per troy ounce, respectively, on a weekly closing basis.
“Gold is expected to find support between $2,562 and $2,544, with resistance in the range of $2,598 to $2,612. Silver is supported between $30.65 and $30.40, while resistance lies between $31.20 and $31.50. In INR terms, gold has support at ₹73,310 to ₹73,150, with resistance from ₹73,790 to ₹73,970. Silver finds support between ₹88,770 and ₹88,250, with resistance ranging from ₹90,250 to ₹90,780,” said Kalantri.
According to Motilal Oswal Financial Services, gold may trade within a range of ₹73,000 – 74,000 in the domestic market, with support at ₹73,300-73,100 and resistance at ₹73,800-74,000.
SMC Global Securities expects gold to trade in the range of ₹73,300-73,800, and silver may trade in the range of ₹88,900-89,900, with sideways to bullish bias.
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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.
