Gold rate today: Yellow metal extends loss, trades at Rs 76,130/10 gm; near-term outlook bullish

Gold rate today: Gold price amid the rising Middle East tension sparkled in Thursday's session (October 3) traded with a drag. MCX October Gold futures traded at Rs 75,462 per 10 gm or Rs 204 per 10 gm, while the December futures traded lower by 0.34 per cent or Rs 260 at Rs 76,130 per 10 gm.

Internationally spot gold traded down by 0.17 per cent at $2,654.19 per ounce at the last count.

In the previous day's trade, gold dropped 0.50 per cent yesterday during the North American session as traders focused on Israel’s potential response to Iran’s missile attack on Tuesday. Geopolitical tensions continue to drive market movements, pushing gold higher after recent bearish sessions since Friday. Currently, XAU/USD is trading at $2,648, after reaching a high of $2,663.

Israel's UN envoy warned Iran of consequences for the attack, while US officials, including Deputy Secretary of State Kurt Campbell, indicated that the US is also considering its response. The US 10-year Treasury yield rose to 3.783%, and the US Dollar Index gained 0.39%, reaching 101.60.

Outlook on gold

Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said, developments in the Middle East suggest further escalation, which could drive precious metal prices higher in the near term. Investors are watching upcoming US jobs data, including today’s jobless claims and Nonfarm Payrolls, expected to show 140K new jobs in September, slightly lower than August’s 142K, with unemployment remaining unchanged.

With rising chances of a 25 bps rate cut in the November meeting, gold prices may hold steady. Meanwhile, silver is expected to outperform gold in the medium term, supported by optimism around China's recent stimulus measures and strength in base metals, added Qureshi

Trading strategy

On the yellow metal, the analyst suggests a buy at Rs 76000 with a stop loss of Rs 75800 and a price target of Rs 76500. Similarly for MCX DECEMBER, Qureshi has advised a buy on Silver futures at Rs 91500 with a stop loss of Rs 90500 and a price target of Rs 93000.

​