Gold price today: Gold rates rose in the domestic futures market in the morning session on Thursday, October 17, amid positive global cues and a fall in us treasury yields. MCX Gold for December 5 expiry traded 0.21 per cent higher at ₹76,822 per 10 grams.
Gold prices traded near record levels in international markets amid heightened tensions in the Middle East. Experts observe that Israel’s aggression over Hezbollah and the possibility of a strike on Iran is supporting safe-haven buying of precious metals.
Easing US treasury yields have also supported gold prices. However, strength in the dollar index is limiting gains.
Investors are awaiting a slew of US economic data, including US retail sales and industrial production data for September and weekly jobless claims data, this week to gauge the US Federal Reserve's interest rate reduction trajectory.
Gold prices tend to gain in times of lower interest rates, geopolitical tensions and macroeconomic uncertainty.
According to Reuters, the CME FedWatch tool showed traders see a 92.2 per cent chance of a 25-basis-point (bp) rate cut by the US Fed in November.
Meanwhile, the US import prices dropped the most in nine months in September. This suggests inflation remains under control, which supports the Fed's plans to keep cutting interest rates.
The European Central Bank (ECB) is likely to cut interest rates again on Thursday as inflation is easing while the economy is stagnating. The market is expecting 25 basis points interest rate cuts from the ECB.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $2,678-2,666, while resistance at $2,704-2,722 per troy ounce and silver has support at $31.74-31.50, while resistance is at $32.20-32.45 per troy ounce in today’s session.
On the MCX, Jain said, gold has support at ₹76,400-76,140 and resistance at ₹76,850-77,100 while silver has support at ₹91,650-91,000 and resistance at ₹92,850-93,500.
"We suggest buying gold on dips around ₹76,500 with a stop loss of ₹76,240 for the target of ₹77,000 and also suggest buying silver around ₹91,650 with a stop loss of ₹91,000 for the target of ₹93,000," said Jain.
Rahul Kalantri, VP of commodities at Mehta Equities, said gold has support at $2,654-$2,640 and resistance at $2,691-$2,705. Silver's support is at $31.52-$31.35, with resistance at $31.98-$32.20. In INR terms, gold has support at ₹76,400-76,240, with resistance at ₹76,880-77,100. Silver's support is at ₹91,550-90,950, while resistance is at ₹92,680-93,380.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, pointed out that despite consolidation, gold is finding solid support between ₹76,000- ₹76,200 on the MCX, while resistance is expected in the ₹76,900- ₹77,100 range.
"As long as the Federal Reserve's dovish tone and geopolitical risks remain, gold will likely continue trading with a positive bias," said Trivedi.
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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.
