Gold prices opened lower on Multi Commodity Exchange (MCX) on Thursday, tracking losses in the international bullion prices, ahead of the US inflation data, while silver prices traded higher.
MCX gold rate opened 0.09% lower at ₹1,01,450 per 10 grams as against its previous close of ₹1,01,542 level. MCX silver prices opened marginally higher at ₹1,17,439 per kg as compared to its previous close of ₹1,17,358 per kg.
At 9:05 AM, MCX gold price was trading at ₹1,01,421 level, down by ₹121, or 0.12%, while MCX silver was up by ₹408, or 0.35%, at ₹1,17,766 per kg.
In the international bullion market, gold prices remained stable as market participants awaited US economic data due this week that could help shed further light on the Federal Reserve’s interest rate trajectory.
Spot gold prices were flat at $3,390.91 per ounce, after hitting its highest point since August 11 earlier in the session, while US gold futures for December delivery were flat at $3,446.70.
Investors now await the release of the US Personal Consumption Expenditures (PCE) Price Index, the preferred inflation measure of the US Fed, scheduled for Friday.
“Gold prices retreated from a two-week high as investors awaited fresh policy signals ahead of Friday’s PCE price index, the Fed’s preferred inflation gauge. Nevertheless, the yellow metal held near record levels, supported by political and institutional uncertainty between the US administration and the Federal Reserve” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Meanwhile, Trivedi noted that Asian demand stayed firm, with China’s net gold imports via Hong Kong surging 126.8% in July from June, more than doubling month-on-month.
Markets are anticipating an over 88% chance of a 25-basis-point rate cut at the Fed’s policy meeting next month, according to CME FedWatch Tool.
New York Fed President John Williams said a rate reduction was under consideration, echoing Chair Powell’s remarks at Jackson Hole. Non-yielding gold typically performs well in a low-interest-rate environment.
Gold Price Outlook
Trivedi expects MCX gold price for October futures may drop to ₹1,01,200 per 10 grams.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said that gold price has support at $3,365 – $3,345 levels, while resistance at $3,412 – $3,434 levels. Silver has support at $38.45 – $38.25 while resistance is at $39.05 – $39.25.
“MCX gold prices have support at ₹1,01,140 – ₹1,01,850, while resistance at ₹1,02,950 – ₹1,03,150. MCX silver has support at ₹1,15,150 – ₹1,14,350, while resistance at ₹1,16,750 – ₹1,17,250 level,” Kalantri said.
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