Gold, silver rate (September 19): Gold down by Rs 200 at Rs 72,854; silver up by Rs 165 at Rs 88,464/kg
Gold prices after rising initially post the Fed rate cut are witnessing some profit booking amid dollar gains.
Gold, silver price (September 19, 2024): Gold price in the futures market mirroring international rate traded lower. At the MCX, gold October futures traded with a cut of 0.28 per cent or Rs 201 at Rs 72,854 per 10 gm, while silver December futures in contrast surged 0.19 per cent or Rs 165 to Rs 88,464 per kg.
Comex Gold
Comex Gold also traded at a discount of 0.45 per cent at $2,587 per ounce.
Fed cuts rate
Gold prices fluctuated within the $2,550-$2,600 range during the North American session overnight after the Federal Reserve (Fed) cut rates by 50 bps. The Fed also projected that the fed funds rate would end 2024 around 4.4%, according to the median estimate.
Easing cycle begins
Fed policymakers decided to lower borrowing costs as they grew confident that inflation is moving “sustainably” toward the bank’s 2% goal. Primarily this was downplaying economic growth concerns in the world's most developed economy.
Oulook on yellow-metal
Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies believes gold prices remained volatile post the Fed decision as it went up above $ 2600 per oz in the spot but quickly erased gains trading around 0.2 per cent lower in the early Asian session.
Overall, gold will look ahead to policy decisions from BOE & BOJ today & tomorrow for further direction amid limited upside, added Qureshi.
Rate cut to boost gold appeal in the near term
However, the surprise rate cut suggests the US Fed is seriously taking the threat of a slowdown to the US economy could boost the safe haven demand for gold and silver in the immediate run.
Dollar gains curbed uptrend in gold
Gold & Silver prices from Hareesh V, Head of Commodities, Geojit Financial Services held that after the rate cut decision, the US dollar turned higher putting pressure on gold like safe commodities.
Earlier, there were expectations that lowering rates would cause a decline in the value of US currency and potentially lift the price of gold and silver, added Hareesh.
Trading strategy for gold, silver
For Gold October futures, Qureshi has advised to buy on dips in the yellow metal at a price of around Rs 73,000 for a target of Rs 73,600, keeping a stop loss of Rs 72,600. For MCX Silver December, the expert advices a buy on dips at around Rs 88,200 for a target of Rs 90,200, keeping a stop loss of Rs 87,200.