Gold price today: Gold rates declined in the domestic futures market Thursday morning, tracking weak global cues even though the US Federal Reserve cut benchmark rates by 50 bps and signalled two more cuts may happen this year.
The US Federal Reserve on September 18 cut the benchmark interest rate by 50 basis points (bps) or (½) half a percentage point to 4.75 per cent-5 per cent for the first time in four years, broadly in line with Wall Street estimates.
Moreover, US Fed policymakers projected the benchmark interest rate would fall by another half of a percentage point by the end of this year - in their final two meetings this year, due in November and December.
US Fed foresees a full percentage point next year and half of a percentage point in 2026, which means they envision four more rate cuts in 2025 and two in 2026. However, they cautioned that the outlook that far into the future is necessarily uncertain.
The move, however, did not sustainably boost gold prices. After rising to a record high, the yellow metal traded flat in international markets while the dollar rose, weighing on gold prices. A stronger dollar makes gold more expensive in other currencies and weakens demand.
A 50 bps rate cut by the US central bank is generally positive for both the stock market and the economy. However, many experts emphasize that it also signals a slowdown in the US economy.
Gold may move higher in the medium term after investors digest the rate cut move as the precious metal tends to gain during rate cuts and economic slowdown.
"Earlier, there were expectations that lowering rates would cause a decline in the value of US currency and potentially lift the price of gold and silver. However, the surprise rate cut suggests the US Fed is seriously taking the threat of a slowdown to the US economy, which could boost the safe-haven demand for gold and silver in the immediate run," said Hareesh V, Head of Commodities, Geojit Financial Services.
MCX Gold for October 4 expiry traded 0.16 per cent lower at ₹72,939 per 10 grams around 9:30 am.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, the international gold price has support at $2,574-2,558, while resistance at $2,614-2,630 per troy ounce and silver has support at $30.34-29.94, while resistance is at $31.00-31.30 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹72,800-72,550 and resistance at ₹73,300-73,620, while silver has support at ₹87,700-87,000 and resistance at ₹89,000-89,650.
Jain suggests selling gold below ₹73,000 with a stop loss of ₹73,300 for the target of ₹72,400.
Brokerage firm SMC Global Securities expects gold to trade in the range of ₹72,700-73,200 and silver to trade in the range of ₹87,800-88,400, with sideways to bearish bias.
On the other hand, brokerage firm Motilal Oswal Financial Services expects MCX Gold to trade with positive bias for the session, with support at ₹72,750-72,500 and resistance at ₹73,200-73,500.
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