Gold price today: Rates of gold and silver declined on the MCX as the US dollar rose after the US Federal Reserve cut the federal funds rate by 25 bps, highlighting weakness in the US job market.
MCX Gold October futures were 0.42 per cent down at ₹1,09,362 per 10 grams around 9:05 am, while MCX Silver December futures were 0.46 per cent down at ₹1,26,403 per kg at that time.
The US Federal Reserve cut benchmark interest rates by 25 bps and hinted that two more rate cuts could occur by the end of this year. The central bank’s next policy meetings are scheduled for October 28-29 and December 9-10 this year.
The Fed offered measured rhetoric on interest rate trajectory which market seems to have perceived as slightly hawkish. Following the Fed policy outcome, the dollar index rose over 0.20 per cent, weighing on gold prices. US gold futures for December delivery declined almost by a per cent during the session.
“Fed Chair Jerome Powell struck a cautious tone on further easing, describing the move as a risk-management measure in response to a softening labour market. Meanwhile, supplies of used gold jewellery and coins in India remain limited, as investors hold onto bullion, anticipating further price gains despite weekly record highs,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Is it the right time to buy gold?
Gold prices may see some correction due to the yellow metal’s record-breaking spree. Gold has surged 40 per cent this year so far, strongly outperforming equities due to heightened global tensions, tariff-related uncertainties, central bank buying, and rate cut expectations.
Experts believe investors should keep buying gold on dips as the long-term trend remains positive.
“The long-term trend of gold and silver is positive. As the Fed rate cut has happened, there may be some profit booking. We recommend buying on dips only, not on the current levels,” said Anuj Gupta, a SEBI-registered commodity expert.
“The Federal Reserve expressed concerns over the US labour market conditions and inflation. So, probably that will positively impact gold and silver prices in the long term,” said Gupta.
Ajit Mishra, SVP of research at Religare Broking, also said the 25 bps rate cut may trigger some profit-taking, but the positive tone would remain intact as long as prices hold above the key support level of $3,650.
“The metal continues to draw strength from expectations of a looser Fed policy path and sustained global demand for safe-haven assets,” Mishra noted.
Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week, as will the dollar index, following the US Fed policy decision.
“Gold has support at $3,688-3,654, while resistance is at $3,740-3,764 per troy ounce, and silver has support at $41.60-41.20, while resistance is at $42.50-42.80 per troy ounce in today’s session,” said Jain.
“MCX Gold has support at ₹1,09,200-1,08,800 and resistance at ₹1,10,150-1,10,666, while MCX Silver has support at ₹1,25,500-1,24,200 and resistance at ₹1,28,000-1,29,500. We suggest selling gold below ₹1,09,700 with a stop loss of ₹1,10,100 for the target of ₹1,09,000,” Jain said.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
