Gold, silver rate (September 2, 2024): Gold price subdued, silver falls over 1% as lower than expected rate cut likely
Gold prices in Monday's session on the MCX traded mildly higher as the US inlfation print cemented rate cut hopes by the US Federal Reserve. At the time of writing at around 10:24 am, MCX gold traded subdued by 0.11 per cent at Rs 71,530 per 10 gm, while silver was down by a sharp over 1 per cent or Rs 885 at Rs 82,400 per kg.
Why the drag on gold, silver prices?
This is after the recent data signals a lower rate cut than expected bullions are seeing some correction.
Gold prices see profit booking from all-time highs
Rahul Kalantri, VP Commodities, Mehta Equities said, "Gold and silver experienced profit-taking from their recent highs after U.S. economic data suggested a reduced likelihood of aggressive Fed rate cuts. The U.S. second-quarter GDP was revised upward from 2.8% to 3.0%, while consumer spending also surged by 0.5 per cent. Additionally, the core PCE price index data mostly aligned with expectations, bolstering the dollar index and U.S. 10-year bond yields.
Dollar index regains strength, capping gains in bullion
The dollar index, recovering from 13-month lows, crossed the 101 mark once again, thereby limiting the gains in precious metals. Gold prices retreated from record highs, and silver prices struggled to sustain levels above $30 per troy ounce.
Gold prices getting support from escalating geopolitical tensions
However, geopolitical tensions and robust investment demand continue to support precious metal prices.
Trading strategy in gold and silver
Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies suggest to buy MCX Gold (October) at Rs 71,500 for a target of Rs 71,900 and stop loss at Rs 71,200. For MCX SILVER – SEPTEMBER, the experts suggest a sell on rise at around Rs 84,300 for a target of Rs 82,300, keeping stop loss at Rs 85,300 per kg.
Gold price support and resistance
Kalantri held that Gold finds support at $2,478-$2,461, with resistance at $2,512-$2,527. In INR terms, gold has support at ₹71,450-₹71,210, with resistance at ₹71,950-₹72,140.
Silver support and resistance levels
Silver has support at $28.22-$28.10 and resistance at $28.70-$28.90, said Kalantri. In Rs terms, Silver has support at ₹82,750-₹82,150, with resistance at ₹83,880-₹84,550.