Gold price (September 6): Gold price trades higher ahead of festivities; MCX Gold near Rs 72,000/10 gm
Gold price (September 6): Gold prices on Friday traded with mild gains as investors await the crucial August non-farm payrolls data due to be released in the US later today.
Gold price on the COMEX
COMEX Gold also continued to trade higher above the crucial levels of $2,500 levels at $2,550 per ounce.
Silver rate
Silver rate on the MCX to be delivered in December is marginally up by 0.2 per cent or Rs 172 at Rs 85,128 per kg.
Data released on Thursday result in speculations of a 50bps rate cut
US jobs data released in previous session showed mixed readings, though it confirmed that the labor market is cooling, fuelling speculation for a 50-basis-point (bps) interest rate cut by the Federal Reserve (Fed) in two weeks.
Recession fears curbed by the latest services activity
On the other hand, the economy remains resilient as business activity in the services segment improved against projections of a slowdown.
Resilient economic state weighs on dollar index and treasury yielld
The US Treasury yields fell after the data with the 10-year Treasury note down three basis points to 3.727%, undermining the buck. The US Dollar Index (DXY), a measure of the Greenback’s value against the other six currencies, tumbles over 0.21% to 101.05.
Gold price outlook
Figures of the ADP National Employment Change showed that private companies hired fewer people than expected with downwardly revised July figures.
However other data showed mixed trend with Initial Jobless Claims for the week ending August 31 showing improvement while ISM Services Purchasing Managers Index (PMI), a measure of business activity, improved. Although jobs market show signs of cooling today’s US Non-farm payrolls growth may remain crucial as could lead to volatility in prices in day trade today.
Trading strategy in gold/silver
Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies suggested a buy on dips for Gold October futures at around Rs 71,900 for a target of Rs 72,400, keeping a stop loss of Rs 71,500. While for Silver (MCX), the buy on dips is advised at around Rs 85,000 for a target of Rs 87,000 with a stop loss of Rs 84,000.