Gold price today: Rates of gold and silver declined on the MCX Thursday (September 11) morning on profit booking ahead of US CPI inflation data, weak spot demand and the dollar’s rise against its peers.
MCX Gold October futures were 0.28 per cent down at ₹1,08,681 per 10 grams around 9:05 am, while MCX Silver December futures were 0.14 per cent down at ₹1,25,000 per kg at that time.
While expectations of a US Fed rate cut next week underpin gold prices, gold’s stellar run and prices near record high levels seem to have created a demand fatigue in the spot market.
MCX Gold touched a record high of ₹1,09,840 per 10 grams on September 9. However, due to weak spot demand and the lack of fresh triggers, it has come down by over ₹1,000 or 1 per cent in two days.
US Fed rate cut in focus
Market participants are expecting a 25 bps rate cut by the US Federal Reserve on September 17 as recent macro data shows deepening stress in the jobs market.
The revised jobs data, as Reuters reported, showed the US economy created as many as 9,11,000 fewer jobs in the 12 months through March than previously estimated.
The focus is on the US Consumer Price Index (CPI) inflation data, due later today. These data will influence expectations about the Fed’s monetary policy path.
However, according to a Reuters poll, US CPI is likely to have increased by 0.3 per cent month-on-month in August after a 0.2 per cent rise in July. On a year-on-year basis, CPI may have risen by 2.9 per cent year-on-year, compared with 2.7 per cent in July.
Is it the right time to buy gold?
Experts expect gold and silver prices to remain volatile in the near term and suggest booking some profit at this juncture.
“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geopolitical tensions and ahead of the US inflation data. Gold is expected to trade in the range of $3,510-3,770 per troy ounce and silver is expected to trade in the range of $39.10-44.00 per troy ounce this week,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
“We suggest booking profits in long positions of gold ahead of the US inflation data and buying silver around ₹1,24,600 with a stop loss below ₹1,23,500 for the target of ₹1,25,700-1,26,600,” said Jain.
Jain said gold has support at $3,655-3,634, while resistance is at $3,700-3,714 per troy ounce, and silver has support at $41.30-40.94, while resistance is at $42.00-42.45 per troy ounce in today’s session. MCX Gold has support at ₹1,08,550-1,08,000 and resistance at ₹1,09,440-1,10,000, while silver has support at ₹1,24,400-1,23,500 and resistance at ₹1,26,300-1,27,000.
Rahul Kalantri, VP of commodities at Mehta Equities, said gold has support at $3,615-3,590 while resistance is at $3,660-3,675. Silver has support at $40.90-40.70 while resistance is at $41.40-41.65.
In INR, gold has support at ₹1,08,340-1,07,740, while resistance is at ₹1,09,450-1,09,950. Silver has support at ₹1,23,550-1,22,750 while resistance is at ₹1,25,950, 1,26,740, Kalantri said.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
