Gold, silver rate (September 20, 2024) Globally gold hovers near record high; MCX Gold up at Rs 73,513, silver down Rs 100 at Rs 89,860/ kg
Gold prices taking cues from the oversized Fed rate cut is trading in the positive territory.
Gold, silver rate (September 20): Gold prices in Friday's trade mirroring positive sentiment in the bullion traded higher. On the MCX, gold October futures traded higher by 0.1 per cent or Rs 75 at Rs 73,513 per 10 gm. Silver futures (December), however, traded with a little loss of Rs 108 or 0.12 per cent at 89,860 per kg.
Spot gold in India
Spot gold in India traded higher by 0.6 per cent at Rs 73,282 per 10 gm.
Gold price in international spot market and on COMEX
In the spot market internationally, gold traded 0.29 per cent higher at $2,594 per oz, while on the COMEX it was trading higher above $2,600 levels at $2,619.3 per oz.
Expectations of further rate cut going ahead led sell-off in dollar
Expectations of further rate cuts by the US central bank attracted fresh US Dollar selling and turned out to be a key factor that benefited the yellow metal. In the previous day's trade, gold internationally marked a new all-time high.
Other tailwinds
Nonetheless, concerns over a slowdown in the United States (US) and China the world's two largest economies and persistent geopolitical risks provided an additional boost to the Gold price.
Factors limiting gold record run
Currently, the heightening risk-on sentiment is playing a spoilsport for the precious yellow-metal.
Short term outlook for Gold
Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said that with start of lower interest rate regime by global central banks, gold prices may end the week in green. It’s also supported this week by geopolitical risks stemming from tensions in the Middle East and the Russia-Ukraine war which acted as a tailwind for the precious metal amid the US political uncertainty ahead of the November presidential election.
Gold price to depend on Bank of Japans stance
For now, the fundamental backdrop looks ahead to the crucial Bank of Japan (BoJ) policy update, which might infuse volatility in the yellow metal in the day trade in case bank of Japan opts for a rate hike or delivers hawkish message for further rate hikes in the year ahead.
Trading strategy in gold/silver
Gold on the MCX is given a buy on dips at around Rs 73,400 for a target of Rs 73,950, keeping a stop loss of Rs 73,000. While for Silver futures (December), Qureshi has again recommended a buy on dips at around Rs 90,000 for a target of Rs 92,000, with a stop loss of Rs 89,000 per kg.