Gold price today: MCX Gold rate today hits record high; what should be your strategy for yellow metal?

Gold price today: Gold rates today rose to a record high in the domestic futures market Wednesday morning, supported by solid demand from spot markets and positive global cues. MCX Gold futures for December 5 expiry surged to a new all-time high of ₹79,535 per 10 grams. At around 9:15 a.m., it was trading 0.25 per cent higher at ₹79,430 per 10 grams.

International spot gold hit a record high of $2,772.42 earlier in today's session on concerns over Middle East conflict and uncertainties surrounding the US presidential election.

Top triggers for bullion

Geopolitical tensions, US election-related jitters, and expectations of further rate cuts by the US Fed are the top factors keeping gold prices at elevated levels recently.

Latest data showed that US job openings dropped to a more than 3-1/2-year low in September. By the last day of September, they were down by 418,000 to 7.443 million, the lowest level since January 2021.

On the other hand, US consumer confidence recorded its largest monthly gain in over three-and-a-half years in October.

Investors now await US Q3 GDP data, expected later today, and September PCE price index data and jobless claims, due on Thursday, to further gauge the US Fed's policy stance. The US Federal Reserve's next rate decision is on November 7.

Markets are currently pricing in a 98 per cent chance of the Fed cutting its rate by 25 basis points in November.

“Gold prices hit a record high as safe-haven demand was boosted by increased political uncertainty in the US and Japan, as well as anticipation of more cues on interest rates.Safe haven demand remained underpinned by anticipation of a tight 2024 presidential election, with voting set for November 5,” Manav Modi, Analyst, Commodity Research, Motilal Oswal Financial Services, observed.

"Japan also added to the political uncertainty after a coalition led by the ruling Liberal Democratic Party lost its parliamentary majority in a recent election. Beyond elections, tensions in the Middle East also still remained in play, given that Iran still vowed retaliation for Israel’s recent strike," Modi pointed out.

What should be your strategy for MCX Gold?

Experts appear largely positive about gold prices due to favourable conditions such as the US election, hopes of rate cuts, and tensions in the Middle East.

According to brokerage firm Motilal Oswal, gold on the domestic front may trade in the range of ₹78,500 -79,500.

"MCX Gold may trade with a positive bias with support at ₹79,200-78,900 and resistance at ₹79,700-80,000," said Motilal Oswal.

Brokerage firm SMC Global Securities believes gold may trade in the range of ₹79,000-79,500, and silver may trade in the range of ₹98,300-99,100, with sideways to a bullish bias.

"Upcoming US economic data, including NFP and unemployment reports, may influence gold's movements, with major support at ₹77,000 and immediate resistance at ₹81,500," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.