Gold rate today: Gold prices continue to fall; trades near Rs 75,900/10 gm
Gold rate today: Gold prices continued to decline in Tuesday's trade following weakness in the international markets. On the MCX, gold December futures were down 0.14 per cent or Rs 106 at Rs 75,939 per 10 gm. Meanwhile, silver futures declined Rs 957 or 1.04 per cent to Rs 91,400 per kg.
Gold price continued to show weakness
Gold price continued to show weakness as the latest US jobs data dampened expectations of a sharp 50 bps rate cut in the next review.
Dollar strength also continued to weigh
The stronger US dollar weighed on gold, as a rising dollar makes bullion more expensive in other currencies. Spot gold is consolidating around $2,650, supported by geopolitical tensions.
International gold rate
The international gold rate is trading near $2,640 per ounce level.
Limited upside seen for bullion
However, limited upside is expected due to dampened rate cut expectations and high prices potentially curbing physical market demand, even during India's festive season.
Key triggers for gold movement
Gold prices going ahead will look for the US CPI report together with the Fed meeting minutes.
Near term outlook for gold
Gold prices are expected to trade rangebound for the next few days.
Higher US bond-yield also plays spoilsport
The US 10-year yield also continued to gain amid nervousness around the likely rate cut next. The U.S. 10-year bond yields crossed the 4.0 per cent mark once again and increased fears of holding Fed rate cut cycles.
Gold price gets support from heightened Middle East tensions
Escalating the Hamas-Israel war and Israel's aggression in Lebanon are also supporting precious metals prices. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and geo-political tensions and ahead of the U.S. inflation data but it is expected to hold its support level of $2,600 and $30.88 per troy ounce respectively on a weekly closing basis.
China's central bank also hold its gold price purchase
The Chinese central bank also holds its gold buying for the fifth consecutive month in September. However, the Russian central bank hints for adding $535.5 million precious metal reserves in the next three years could support gold and silver prices at lower levels.
Geopolitical tensions also support gold, silver prices
Escalating the Hamas-Israel war and Israel's aggression in Lebanon are also supporting precious metals prices, said Manoj Jain- Director- Prithvi Finmart.
Trading strategy
Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies gave the following below strategy for trading in precious metals.