Gold rate today: Gold prices displayed volatility in the domestic futures market on Wednesday morning, leading up to the US Federal Reserve’s monetary policy decision. There is a prevalent expectation that the Fed will implement an aggressive rate-cutting strategy.
In the international markets, gold prices appeared lacklustre as investors awaited the outcome of the US Fed’s decision. While a 25 bps rate cut is already factored in, the majority of investors are anticipating a larger 50 bps rate reduction.
As per a Reuters report, the likelihood of a 50-basis-point rate cut has increased to 65% in the eyes of the market, compared to 34% just a week earlier, according to the CME FedWatch tool.
Factors Driving Gold Prices
The rise in gold prices this year, with a 16% increase in spot gold prices in India and over 24% in international gold prices, is influenced by various factors. These include expectations of interest rate cuts, heightened gold buying by central banks, uncertainties surrounding the US elections, escalating geopolitical tensions, and increased investments in gold via exchange-traded funds (ETFs).
With optimism about a substantial rate cut during the current cycle, it is anticipated that gold prices will reach new highs in the coming months.
MCX Gold for October 4 expiry was trading 0.06% lower at ₹73050 per 10 grams around 10:35 am.
Expert Insights on MCX Gold Today
Experts predict that gold prices will remain volatile in the current session pending the outcome of the US Fed policy.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $2,574-2,558 and resistance at $2,610-2,622 per troy ounce. Silver, on the other hand, has support at $30.64-30.20 and resistance at $31.40-31.84 per troy ounce in today’s session.
Jain advises caution with gold and silver until the Fed meeting’s outcome.
Rahul Kalantri, VP of commodities at Mehta Equities, notes that gold has support at $2,555-2,540 and resistance at $2,590-2,612. For silver, the support is at $30.20-30.00, with resistance at $30.65-30.88.
In terms of INR, Kalantri mentions that gold has support at ₹72,850-72,650 and resistance at ₹73,390-73,570. Silver is supported at ₹88,450-87,750, with resistance between ₹89,750-90,780.
SMC Global Securities projects that gold may trade in the range of ₹72,900-73,300, and silver in the range of ₹88,800-89,400, with a sideways to mixed bias.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. Investors are advised to consult certified experts before making any investment decisions.
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### Additional Insight:
– The uncertainty surrounding the US elections and the ongoing geopolitical tensions are significant drivers behind the uptick in gold prices.
– The increasing interest in gold ETFs showcases investors’ confidence in gold as a safe haven asset during turbulent times.
– Analysts suggest closely monitoring the Fed’s policy decisions to gauge the direction of gold prices in the short term.
– The current economic landscape, marked by the pandemic and global economic uncertainties, further supports the rally in gold prices as investors seek stability and security.
