Gold rate today: Gold prices traded volatile in the domestic futures market on Wednesday morning ahead of the US Federal Reserve's monetary policy decision, as expectations are high that the Fed will embark on an aggressive rate-cutting regime.
In international markets, gold prices traded lacklustre as investors awaited the US Fed's outcome. While a 25 bps rate cut is fully priced in, a majority of investors now expect the US central bank to pursue a larger 50 bps rate cut.
According to a Reuters report, markets now see a 65 per cent chance of a 50-basis-point rate cut, compared to 34 per cent a week earlier, according to the CME FedWatch tool.
Spot gold prices in India have risen by around 16 per cent this year. Meanwhile, international gold prices have increased by more than 24 per cent.
This rise is due to several reasons, including expectations of interest rate cuts, more gold buying by central banks, uncertainty around the US elections, rising geopolitical tensions, and higher investments in gold through exchange-traded funds (ETFs).
With hopes of a significant rate reduction in the current rate-cut cycle, gold prices are expected to scale new highs in the coming months.
MCX Gold for October 4 expiry traded 0.06 per cent lower at ₹73050 per 10 grams around 10:35 am.
Experts expect gold prices to remain volatile in today's session ahead of the US Fed policy outcome.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $2,574-2,558 and resistance at $2,610-2,622 per troy ounce, and silver has support at $30.64-30.20 and resistance at $31.40-31.84 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹72,800-72,580 and resistance at ₹73,300-73,550 while silver has support at ₹88,450-87,700 and resistance at ₹89,950-90,500.
Jian suggests staying away from gold and silver until the Fed meeting outcome.
Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $2,555-2,540, with resistance at $2,590-2,612. Silver has support at $30.20-30.00, with resistance at $30.65-30.88.
In INR terms, Kalantri said gold has support at ₹72,850-72,650 and resistance at ₹73,390-73,570. Silver has support at ₹88,450-87,750, while resistance lies between ₹89,750-90,780.
According to SMC Global Securities, gold may trade in the range of ₹72,900-73,300, and silver may trade in the range of ₹88,800-89,400, with sideways to mixed bias.
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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.
