Gold price gains on rate cut optimism, geopolitical tensions; experts point out key levels for MCX Gold rate today

Gold rate today: Gold price moved up in early trade in the domestic futures market on Tuesday, September 24, amid positive global cues. Optimism around the continuity of the US Fed rate cut this year, and tensions in West Asia are keeping gold prices in the higher orbit.

International spot gold prices traded steadily after hitting a record high of $2,635.29 on Monday.

After a 50 bps cut on September 18, expectations are rife that the US Fed may cut rates by another 50-75 bps by the end of this year. Fed officials' recent dovish remarks have bolstered the faith that the central bank is more focused on supporting the economy.

According to a Reuters report quoting the CME FedWatch Tool, Fed futures traders have priced in 75 basis points rate cuts by the end of 2024.

Reuters reported that Fed policymakers on Monday pointed out that the 50 bps rate cut last week aimed to sustain an emerging and healthy balance in the economy.

"Chicago Fed Bank President Austan Goolsbee said there will be lots of cuts over the next 12 months, while Fed President Neel Kashkari noted that the actual path would depend on incoming data," reported Reuters.

Experts pointed out that the war between Israel and Hezbollah has aggravated safe-haven flows into gold as investors seek to hedge against a potential wider conflict in the region. According to media reports, Israeli strikes against Hezbollah in Lebanon killed nearly 500 people, stoking the risk of further escalation.

Experts say geopolitical tensions, rate cuts and buying by central banks are expected to keep the yellow metal up in the medium term.

MCX Gold traded 0.26 per cent up at ₹74,485 per 10 grams around 9:30 am.

Experts' strategy for MCX Gold

Even though the overall trend for gold is positive, experts expect the precious metal's prices to see volatility this week due to the dollar's movement and US macro prints.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $2,605-2,588 and resistance at $2,642-2,660. Silver has support at $30.55-30.40 and resistance at 31.05-31.24.

In INR terms, Kalantri said gold has support at ₹74,050-73,870 and resistance at ₹74,590-74,850. Silver has support at ₹88,450-87,750 and resistance at ₹90,000-90,780.

Manoj Kumar Jain of Prithvifinmart Commodity Research, sees support for gold at $2,634-2,618 and resistance at $2666-2684 per troy ounce.

"On the MCX, gold has support at ₹74,040-73,800 and resistance at ₹74,500-74,720," said Jain.

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