Gold Rate Today (August 21): Domestic gold futures traded with gains taking cues from gold price movement in the international markets. At around 10:02 am, Gold October futures traded higher by 0.25 per cent or Rs 183 at Rs 71,960 per 10 gm, while Silver September futures was up 0.17 per cent or Rs 140 at Rs 84,870 per kg.

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In the previous day's trade on heightened optimism around interest rate cut in the US, gold prices scaled a new all-time high of $2,531.75 per ounce internationally as the dollar continued its southward journey amid speculation that Fed Chair Jerome Powell will flag steep rate reduction when he gives his address at Jackson Hole on Friday. A weaker greenback typically aids gold as it is priced in the US currency.

Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies is of the view that as the markets anticipate an imminent pivot by the Fed to lower borrowing costs, the backdrop for gold is looking increasingly bullish.

UBS Global Wealth Management’s Wayne Gordon sees prices heading toward $2,700 an ounce by the middle of next year. Gold has rallied by more than a fifth this year, and has also been supported by robust purchases by central banks, increased haven demand, as well as healthy buying of physical bars in the over-the-counter market, added Qureshi.

Outlook for gold 

Gold has been hitting new successive highs with investors remaining concerned about the risk of a further escalation of geopolitical tensions in the Middle East and the protracted Russia-Ukraine war is seen as one of the factor acting as a tailwind for the safe haven Gold price.

Additionally, as the July FOMC meeting minutes, scheduled to be released on Wednesday, and Fed Chair Jerome Powell's appearance on Friday will be looked upon for hints about the possibility of a larger rate cut in September. Besides concerns remain of further BoJ rate hike discussion to take place this Friday among Japanese policymakers which could bring in volatility to prices at higher levels in spot markets, points out Qureshi.

How to trade gold and silver on MCX?

Qureshi suggests to buy on dips gold October futures at around Rs 71,700 keeping a stop loss at Rs 71,200 with a target of Rs 72,300 per 10 gm. For silver, the analysts suggests to buy Silver September futures on dips at a price of around Rs 84,800 for a target of Rs 86,800 keeping a stop loss of Rs 83,800 per kg.