Precious commodity price (September 11): Gold mirroring international movement traded higher; silver zooms over Rs 945 to 84,626/kg

Gold prices (September 11): Gold prices tracking gains in the international market traded positive ahead of the key US CPI data. At around 11:47 am, Gold MCX futures (October) traded higher by 0.34 per cent at Rs 72,160 per 10 gm, while silver futures traded significantly higher by over 1 per cent at Rs 84,626 per kg, up over 1 per cent or Rs 945. 

The market is hovering above the psychological price level of $ 2500, leaning slightly to the upside due to dollar index seen erasing earlier gains and 10 year yields down marginally, said Qureshi-, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.

On the COMEX, gold traded with a similar gain at $2,556 per ounce.

Qureshi said the price lacks strong momentum as traders look ahead to key US Inflation report and ECB rate decisions along with key US presidential debates today between Trump & Kamala Harris which could have the potential to influence financial markets.

Rising odds of a Trump Presidency could remain supportive for the dollar and weigh on gold prices. Also macro fund positioning is also at its highest levels since the Brexit referendum in 2016, the ‘stealth QE’ narrative in 2019, and the depths of the pandemic in Mar 2020 which indicates long liquidations could occur in case price breaches below $ 2490 per oz on the downside in coming days, added Qureshi.

Gold/ silver trading strategy

For MCX Gold (October), Qureshi recommended a buy on dips at around Rs 71,900 for a target of Rs 72,300 and a stop loss at Rs 71,500 per 10 gm.

For silver futures (December), a buy on dips is given at around Rs 83,700 for a target of Rs 85,700 and a stop loss of Rs 82,700 per kg.