Gold price on Diwali 2024: MCX Gold rate declines on profit booking; experts share trading strategies for yellow metal

Gold price today: MCX Gold rate declined in morning trade in the domestic futures market on Thursday, October 31, primarily due to profit booking at higher levels ahead of Diwali 2024. MCX Gold for December 5 expiry traded 0.16 per cent lower at ₹79,612 per 10 grams around 9:35 am. The yellow metal hit its record high of ₹79,775 in the previous session.

In international markets, spot gold prices hit a record high of $2,790.15 and were on track for their biggest monthly gain in seven, reported Reuters.

Geopolitical tensions, US election-related jitters, and expectations of further rate cuts by the US Fed are the top factors keeping gold prices at elevated levels recently.

Meanwhile, the latest US macro data show the world's largest economy remains solid.

The US economy grew strongly in the third quarter, driven by the fastest rise in consumer spending in 1.5 years and a sharp slowdown in inflation.

According to Reuters, “US gross domestic product (GDP) increased at a 2.8 per cent annualized rate last quarter, the Commerce Department's Bureau of Economic Analysis said. Economists polled by Reuters had forecast GDP would advance by 3 per cent.”

“Consumer spending, which accounts for more than two-thirds of economic activity, grew at a 3.7 per cent pace. That was the fastest rate since the first quarter of 2023 and was up from the 2.8 per cent pace notched in the second quarter. It added 2.46 percentage points to GDP growth, the most in 1-1/2 years,” Reuters reported.

Experts' strategy for MCX Gold

According to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, gold remains buoyant on festive demand in India, with added momentum from market bets anticipating a Trump victory in the upcoming US election. This optimism has led to a surge in liquidity in gold markets.

"Traders are eyeing ₹78,200 as immediate support; a fall below this level could push prices down to ₹77,000. On the higher side, the Diwali target is set at ₹80,000, reflecting a strong sentiment for further gains amidst festival season buying," said Trivedi.

Brokerage firm SMC Global Securities believes gold may trade in the range of ₹79,500-80,000, and silver may trade in the range of ₹97,300-98,300, with sideways to bullish bias.

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