Gold rate (September 5): Gold prices trade mildly higher ahead of key US data
Gold price on Septenber 5 extended its previous day gains as focus remained on the US labour data.
Gold prices tracking international gold rate movement traded on a positive note. MCX Gold last traded up by Rs 71,582 per 10 gm, up Rs 116 or 0.16 per cent. COMEX gold also traded with minor gains at $2,530.9 per ounce at the last count.
Gold prices edge higher
Gold prices edged higher on Wednesday following a report that showed US job openings fell in July to the lowest since the start of 2021. The figures added to signs of a cooling labormarket, bolstering bets for steep rate cuts,
Key data in focus
The US nonfarm payrolls report is due Friday. The data print will offer cue on the interest rate cut by the Federal Reserve.
Previous print gave rise to risk-off sentiment
The previous print one of the weakest since the pandemic proved crucial after the numbers contributed to August’s global stock rout, dragging down gold as traders covered margin calls.
Bullion gains a steep over 20 per cent YTD
Bullion this year gained sharply by as much as 20 per cent given the expectations that the Fed will resort to quantitative easing. Also, geopolitical tensions as well as robust over-the-counter demand for the bullion held on to the gains.
Gold price outlook
Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said gold price struggled to capitalize on the overnight bounce from the critical support zone around $ 2470 – 2475 in spot or a nearly two-week low and oscillates in a narrow trading band during the Asian session today.
The downside, however, remains cushioned in the wake of rising bets for a larger interest rate cut. Overall traders may also remain cautious to place a sustainable bullish bets ahead of NFP scheduled tomorrow, said Qureshi.
Gold and silver price trading strategy for September 5
The expert has suggested a buy on dips in the bullion at a price of around Rs 71,500 for a target of Rs 71,900, keeping a stop loss of Rs 71,100 per 10 gm. Furthermore, for silver, the analyst suggested a buy on dip at around Rs 83,600 for a target of Rs 85,600 per kg. The stop loss to be maintained in the trade is Rs 82,600.