Gold rate today: Gold prices increase after previous day's fall; MCX gold above Rs 75,050/10 gm

Gold rate today: Gold prices tracking international rate movement traded with gains. Gold October futures traded with gains of 0.26 per cent or Rs 198 at Rs 75,067 per 10 gm. Spot price in Ahmedabad last in Monday's session quoted at Rs 75,051 per 10 gm.

Meanwhile, silver December futures also traded with gains of 0.36 per cent at Rs 91,050 per kg. 

In the previous day's trade, gold and silver settled lower in the international markets.  The U.S. Fed Chairman’s tone in his first speech post 50 basis point rate cuts was very soft and his guidance on the monetary policy is further neutralizing interest rates based on the upcoming economic data. He said, we will review monetary policies meeting by meeting looking at the upcoming economic data but confident that the economy is in good shape as the job market is strong and inflation is moving towards the Fed's target rate of 2.0 per cent.

Further rate cut expectations and geo-political tensions could support gold and silver prices. Manoj Jain- Director - Prithvi Finmart said, "We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geo-political tensions and ahead of the U.S. job data but it is expected to hold its support level of $2,600 and $30.40 per troy ounce respectively on a weekly closing basis."

Gold has support at $2644-2632, while resistance at $2674-2688 per troy ounce and silver has support at $31.15-30.84, while resistance is at $31.70-32.00 per troy ounce in today’s session.

At MCX, gold is having support at Rs 75380-75140 and resistance at Rs 75850-76100 while silver is having support at Rs 90150-89400 and resistance at Rs 91350-92100. We suggest  waiting for some corrective dips for initiating fresh positions in the gold and silver, added Jain.

Meanwhile, Neha Qureshi,  Senior Technical and Derivative research Analyst, Anand Rathi Commodities and Currencies said, "Markets now price in only a 36 per cent chance that the Fed will lower rates by 50 bps in November, down from 53.3 per cent a day earlier, according to CME Group's Fed Watch Tool. Overall we may continue to see limited upside in day trade today amid intensifying Middle East tensions, anticipating the top-tier US ISM Manufacturing PMI and JOLTS Job Openings survey for fresh directives.

Trading strategy in Gold/ silver

Neha Qureshi on Gold futures advised a buy at Rs 75,500 with a stop loss of Rs 75300 and a price target of Rs 76000. While for Silver, the buy is given at a price of Rs 90,500 with a stop loss of Rs 89500 and a price target of Rs 92000