Gold, silver price (September 12, 2024): MCX Gold trades near Rs 72,000, silver up Rs 450 at Rs 84,900

Gold, silver rate (September 12): Gold prices mirroring gains in the international markets traded with marginal gains after the softer US CPI print. At around 11:20 am, Gold MCX (October) futures traded with gains of 0.09 per cent or Rs 67 at Rs 71,994 per 10 gm, while silver December futures traded up by 0.53 per cent or Rs 450 at Rs 84,900 per kg.

US inflation data prompted traders to cut longs due to increasing odds that the Federal Reserve (Fed) will kick off its easing cycle with a 25-basis-point (bps) interest rate cut.

COMEX Gold traded with mild gains of 0.15 per cent at $2,546.1 per ounce.

Monthly headline inflation remained unchanged, while the monthly core, which excludes food and energy, ticked up a tenth.

Market participants pushed US Treasury yields higher amid fears that the Fed could be dissuaded from cutting interest rates by 50 basis points (bps) and instead might opt for 25 bps next week. The US 10-year Treasury rose to 3.655 per cent, up by one and a half bps. The greenback was bolstered after the news, hitting a daily high of 101.82, according to the US Dollar Index (DXY). At the time of writing, the DXY is virtually unchanged at 101.68.

Outlook for Gold

Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said gold may to look ahead to ECB Interest rate decision amid jobless claims to provide further clues on state of labor market in the US.

Overall gold is expected to consolidate above $ 2500 per oz in spot in day trade ahead of crucial macro triggers while extreme macro positioning in the yellow metal still persist which could remain a risk in the coming days and could lead to liquidation in case the same breaches $ 2490 on the downside, added Qureshi.

Trading Strategy in Gold

The expert advises to buy gold MCX (October) futures on decline at around Rs 71,900 for a target of Rs 72,300, keeping a stop loss at Rs 71,500, while for MCX Silver (December)- the analyst again recommended a buy on dips at around Rs 84,400 for a target of Rs 86,400 with a stop loss of Rs 83,400.