Gold price today: Gold prices moved up in the domestic futures market on Monday, while the 24-carat yellow metal touched ₹76,700 per 10 grams mark in Delhi amid strong demand and positive global cues. Sentiment remained upbeat after a 50 bps US Fed rate cut and expectations of more rate cuts until 2026.
Rate cuts augur well for gold prices. When the Fed cuts interest rates, yields on interest-bearing assets like bonds and savings accounts fall. This increases the attractiveness of gold since it doesn’t pay interest or dividends.
Moreover, rate cuts tend to weaken dollars. Since gold is priced in dollars, it becomes cheaper for investors holding other currencies, boosting global demand and increasing prices.
Spot gold prices traded near record-high levels in international markets, driven by bullish traders' bets after the start of the US rate reduction cycle. After a 50 bps cut on September 18, the Fed said rates may come down in November and December this year, followed by additional rate cuts of a full percentage point next year and by half a percentage point in 2026.
According to the CME FedWatch tool, traders are currently pricing a 51 per cent chance of a 50-basis-point reduction in November and a 49 per cent chance of a 25-bp cut.
MCX Gold for October 4 delivery traded 0.20 per cent higher at ₹74,190 per 10 grams around 4 pm.
Gold prices are expected to experience volatility in the near term, reacting to the dollar's movement and geopolitical developments.
"We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and geopolitical tensions. Gold and silver, however, are expected to hold their support levels of $2,564 and $29.80 per troy ounce, respectively, on a weekly closing basis," said Manoj Kumar Jain of Prithvifinmart Commodity Research.
"Gold has support at $2,622-2,610, while resistance at $2,666-2,684 per troy ounce and silver has support at $31.20-30.88, while resistance is at $31.80-32.10 per troy ounce in today’s session," said Jain.
"On the MCX, gold has support at ₹73,800-73,550 and resistance at ₹74,280-74,600, while silver has support at ₹89,550-88,800 and resistance at ₹90,650-91,200," Jain said.
Jain suggests waiting for some corrective dips in gold and silver to initiate fresh long positions. The overall trend of both precious metals is bullish, but he recommends avoiding aggressive buying at the current levels.
Rahul Kalantri, VP of commodities at Mehta Equities, said gold and silver are in a long-term bull run and could extend their gains in the upcoming months.
"Gold has support at $2,600-2,582 while resistance is at $2,634-2,651. Silver has support at $30.92-30.76 while resistance is at 31.30-31.44. In INR terms, gold has support at ₹73,850-73,640, while resistance is at ₹74,240-74,420. Silver has support at ₹89,450-88,750, while resistance is at ₹90,750-91,480," said Kalantri.
According to brokerage firm SMC Global Securities, gold may trade in the range of ₹73,800-74,200, and silver may trade in the range of ₹89,700-90,500, with sideways to bullish bias.
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