Gold price (September 24): Gold price continue to scale new highs internationally, MCX gold at Rs 74,614, silver up near Rs 90,200/kg

Gold price on COMEX

Gold price on the COMEX traded with gains of 0.31 per cent at $2,659.5 per ounce.

Gold in a consolidation phase

Gold price extends its consolidative price move for the second straight day on Tuesday as bulls turn cautious after the recent rise to a fresh all-time peak touched the previous day amid slightly overbought conditions on the daily chart

Downside in bullion capped on further rate cut bets

The downside in gold prices remain capped as the Fed has hinted at further rate cuts, which caps the US Dollar (USD) recovery from the YTD peak touched in reaction to a jumbo rate cut last week.

Geopolitical tensions also support gold gains

The escalating geopolitical tensions stemming from the ongoing conflicts in the Middle East, along with the US political uncertainty ahead of the November election and worries about an economic slowdown, may underpin the safe-haven Gold price. 

Gains in gold to be capped

However as the risk-on sentiment got a fillip post the Fed rate cut, gains in gold can be limited in the near term. The underlying bullish tone across the global equity markets keeps a lid on the safe-haven ahead of this week's release of the US Personal Consumption Expenditures (PCE) Price Index on Friday, said Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.

Outlook on Gold and silver

Qureshi added that gold may turn cautious at higher levels as focus remains on speeches by various Fed officials due later in the week. Meanwhile with China unleashing a blitz of policy support for broader economy, including a cut in reserve requirements to banks and slashing short term lending rates yesterday, silver could find support at lower levels keeping sentiments positive for white metal.

Trading strategy in gold/silver

For gold October futures, Qureshi has suggested to buy gold on dips at around Rs 74,200 for a target of Rs 74,730 per 10 gm, keeping a stop loss of Rs 73,800 per 10 gm. Similarly for silver December futures, the expert has advised a buy on dips at around Rs 90,000 for a target of Rs 92,000, keeping a stop loss of Rs 89,000 per kg.