Gold prices on the MCX tracking global gold price movement traded on a positive note. Gold futures for October delivery were up Rs 71,480, Rs 99 or 0.14 per cent, while silver also was up marginally 0.06 per cent or Rs 48 at Rs 81,257 per kg.

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Gold price  bounced off the multi-day lows but remains below the $2,500 barrier amid the renewed bid bias in the US Dollar. The ongoing geopolitical risks and imminent Federal Reserve (Fed) rate cuts underpinned the yellow metal only to some extent.

Later on Wednesday, JOLTS Job Openings and Fed Beige Book will be released. Investors will closely monitor the highly-anticipated US August Nonfarm Payrolls (NFP) on Friday, which could determine the size and pace of the potential rate cut at the Federal Reserve's September policy meeting. If the report shows weaker-than-expected reading, this could fuel speculation about a US recession and faster Fed rate cuts., noted Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.

Outlook

Qureshi added that gold price trades in negative territory on the day but holds above the key 100-day Exponential Moving Average (EMA) on daily charts. Meanwhile weakness in China physical demand still persist as evident from discounts persisting in Shanghai Gold price over LBMA prices while Indian prices also trades at a discount to landed cost indicating physical activities not picking up.

Overall global macro cues could also be watched out in coming days which includes US Beige Book survey today as well as Crucial Non farm payrolls report to shed fresh direction on the trajectory of Interest rate cuts this year and may provide fresh direction to gold prices.

Trading strategy in gold/silver

Qureshi suggest to buy Gold October futures at dips of around Rs 71,400 for a target of Rs 71,900, keeping a stop loss of Rs 71,100. For September futures, a sell on rise is given for around Rs 83,300 levels keeping a target of Rs 81,300 and target of Rs 84,300.