Gold price today: Rates of gold rose on the MCX Thursday (October 23) morning as investors bought the dip witnessed in previous trade. MCX Gold December futures traded 0.89% higher at ₹1,22,938 per 10 grams around 9:08 IST. MCX Silver December contracts were 0.93% up at ₹1,46,915 per kg at that time.
According to Jigar Trivedi, Senior Research Analyst at Reliance Securities, the MCX gold price for December expiry may trade in a range from ₹121,500 to ₹123,000 per kg.
In the global market, gold prices dipped on Thursday, influenced by a stronger dollar as investors anticipated crucial US inflation data scheduled for later this week, which could provide insights into the trajectory of interest rates.
As of 0310 GMT, spot gold declined by 0.2% to $4,084.29 per ounce, while US gold futures for December delivery increased by 0.9% to $4,100.90 per ounce, according to a report from Reuters.
The dollar index advanced by 0.2% against its peers, making gold pricier for those holding other currencies.
“Gold prices fell to around $4,080 per ounce, extending their decline for a third straight session amid continued selling pressure after repeatedly hitting record highs in recent weeks. Optimism over a potential US-China trade deal, ahead of talks between Presidents Trump and Xi Jinping and combined with Trump’s recent more conciliatory remarks toward China, has reduced gold’s safe-haven allure,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Nevertheless, gold is still up roughly 55% for the year and over 5% this month, supported by expectations that the Federal Reserve will implement two additional rate cuts by year-end, he added.
Gold typically increases in value when interest rates are low because it lessens the opportunity cost associated with holding non-yielding bullion, as per experts.
Investors have largely factored in a 25-basis-point interest rate cut in the upcoming Federal Reserve meeting next week. The US Consumer Price Index (CPI) report, which was delayed due to the government shutdown, is anticipated to indicate that core inflation remained at 3.1% in September.
Gold price outlook: Here’s what experts say
Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said that gold and silver prices stabilised around $4,050 and $48 per ounce after a sharp correction in the last two sessions as investors booked profits from Monday’s record highs. The pullback reflected a shift toward risk assets amid optimism over US–India trade relations, weakening gold’s safe-haven demand, he said.
“Seasonal demand in India also eased, putting pressure on physical markets. Despite the short-term correction, gold remains significantly higher for the year, buoyed by expectations of further Federal Reserve rate cuts and lingering global economic uncertainties,” Kalantri added.
“Investors now await Friday’s US CPI report for new insights into the Fed’s policy outlook. Gold has support at $4020-3975, while resistance is at $4125-4170. Silver has support at $47.85-47.40 while resistance is at $48.75-49.30. In INR, gold has support at Rs1,21,070-1,20,580 while resistance is at Rs1,22,350-1,23,000. Silver has support at Rs1,44,350-1,43,450 while resistance is at Rs1,46,850, 1,47,780,” added Kalantri.
Talking about the recent gold price crash, Colin Shah, MD, Kama Jewelry, said that it was largely on the much-anticipated lines, given the significant rally the yellow metal has witnessed in recent times. “This comes more as a price correction, and while there is a dip, this is temporary for the short term. While in the long run, gold is expected to continue soaring to new heights, given the backdrop of global economic triggers,” Shah said.
The investors perceive this as an opportunity and take the “buy the dip” approach to book their profits, using gold as a hedge against inflation, said Shah. Consumers, on the other hand, leverage this softening of prices to buy jewellery for occasions like weddings, he added. “This rate correction is a positive approach for both classes of buyers, and while internationally the trend may differ, Indian gold-buying thrives on such occasions,” he further noted.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
