Gold price (September 9): Gold price up marginally; MCX Gold above Rs 71,500/10 gm, silver close to Rs 83,000/kg

On the COMEX, gold prices traded above the key $2,500 per level after having fallen below the threshold last Friday.

US labor market data was weaker but cast doubts on a 50 or 25-basis-point (bps) interest rate cut by the Federal Reserve (Fed) at the September meeting. The US Bureau of Labor Statistics (BLS) revealed that Nonfarm Payrolls (NFP) in August missed their estimate but improved compared to July’s downwardly revised number. Digging deep into the report, the Unemployment Rate dipped compared to the previous month, while Average Hourly Earnings rose.

According to the data, Fed interest rate probabilities fluctuated sharply. As the dust settled towards the close on Friday, market participants estimated that a 25 bps cut was more likely as the chances of it rose by 73 per cent, while for a 50 bps cut they decreased to 27 per cent.

Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said, "Although gold buyers in short term face challenges to push the price above its all-time highs, prices are bound to remain on sell on rallies mode till the announcement of major policy decisions next week by US FED, BOJ, BOE & PBOC."

Spot Gold may witness major supports near the August 22 low at $2,470 a successful breach below which the next demand zone would be the confluence of the April 12 high, which turned into support between $2,435 and $2,431.

For MCX GOLD – OCTOBER, the expert has given a 'sell on rise' recommendation for a target of Rs 69,700 at a price of Rs 70,400, keeping a stop loss of Rs 70,900.

For MCX Silver, the expert adviced a buy on dips at around Rs 82,000 for a target of Rs 84,000, keeping a stop loss of Rs 81,000 per kg.